Big Lots reaches deal to keep hundreds of U.S. stores open
Discount chain Big Lot, which filed for bankruptcy protection in September, has reached a deal that will keep hundreds of its stores and distribution centers open.
Big Lot said Friday it will be sold to Gordon Brothers Retail Partners, a firm that specializes in servicing distressed companies. Gordon Brothers will then transfer Big Lot’s stores, distribution centers and other assets to other retailers.
Variety Wholesalers Inc., which has more than 400 discount stores in the southeastern and mid-Atlantic regions of the United States, plans to acquire 200 to 400 Big Lot stores and operate them under the Big Lot brand. Variety Wholesalers will also acquire up to two distribution centers.
“This sale agreement and transfer provides the best opportunity to preserve jobs, maximize property value and ensure the continuity of the Big Lot brand,” Big Lot President and CEO Bruce Thorn said in a statement. opportunity.” “We are grateful to our colleagues across the country for their courage and resilience throughout this process.”
Columbus, Ohio-based Big Lot sells furniture, home decor and other items. The company said when it filed for bankruptcy in September that inflation and high interest rates were causing consumers to buy less household and seasonal products, two categories that account for a large portion of the chain’s revenue.
At the time, Big Lot planned to sell its assets and ongoing operations to private equity firm Nexus Capital Management.
But on December 20, Big Lot said the deal with Nexus had not materialized. The company then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. stores.
