Big Lots agrees to continue operating some stores
Discount chain Big Lots, which filed for bankruptcy protection in September, has reached an agreement to keep hundreds of stores and distribution centers open, The Associated Press reports. Variety Wholesalers, which owns more than 400 discount stores in the Southeast and Mid-Atlantic regions of the United States, plans to acquire 200 to 400 Big Lots stores and operate them under the Big Lots brand.
Discount store chain Big Lots has reached an agreement to keep hundreds of stores and distribution centers open after filing for bankruptcy protection in September.
Big Lots announced Friday that it will be sold to Gordon Brothers Retail Partners, which specializes in distressed companies. Gordon Brothers will then transfer Big Lots stores, distribution centers and other assets to other retailers.
Variety Wholesalers, which owns more than 400 discount stores in the Southeastern and Mid-Atlantic regions of the United States, plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand. The variety wholesaler will also acquire up to two distribution centers.
Related: Big box stores to close more than 50 retail stores
“This sale agreement and transfer will preserve jobs, maximize real estate value, and ensure the continuity of the Big Lots brand,” Bruce Thorne, president and CEO of Big Lots, said in a statement. “This is our strongest opportunity to secure this.” “We are grateful to our employees across the country for their grit and resilience throughout this process.”
A “Big Lots” sign is posted outside a store in Austin, Texas, on September 9, 2024. (Photo by Brandon Bell/Getty Images)
Big Lots, based in Columbus, Ohio, sells furniture, home decor and other items. When the company filed for bankruptcy in September, it said inflation and high interest rates were holding back consumers from buying household and seasonal goods. These two categories are what the chain relies on for a significant portion of its revenue.
Related: Big Lots begins holding ‘going out of business’ sales at remaining stores
At the time, Big Lots was planning to sell its assets and continued operations to private equity firm Nexus Capital Management.
However, on December 20, Big Lots announced that the deal with Nexus did not materialize. We then partnered with Gordon Brothers to hold a going-out-of-business sale at 869 locations across the United States.
