Big Lots, the discount chain that filed for bankruptcy protection in September, has secured a deal to keep a significant portion of its stores and distribution centers operational. The company announced Friday that it will be sold to Gordon Brothers Retail Partners, a firm specializing in distressed businesses. Gordon Brothers will subsequently transfer Big Lots’ assets – including stores, distribution centers, and other holdings – to other retailers.
Variety Wholesalers Inc., a discount retailer operating over 400 stores in the U.S. Southeast and Mid-Atlantic, plans to acquire between 200 and 400 Big Lots locations. These stores will continue to operate under the Big Lots brand. Variety Wholesalers will also acquire up to two of Big Lots’ distribution centers. Big Lots President and CEO Bruce Thorn stated, “This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand. We are grateful to our associates nationwide for their grit and resilience throughout this process.”
The Columbus, Ohio-based Big Lots, which sells furniture, home décor, and other goods, cited inflation and high interest rates as factors contributing to its bankruptcy filing in September. These economic pressures led to decreased consumer spending on home and seasonal products, crucial revenue streams for the company. While Big Lots initially planned to sell its assets to Nexus Capital Management, that deal fell through on December 20th. Subsequently, Big Lots partnered with Gordon Brothers to conduct going-out-of-business sales across its 869 U.S. locations before the current sale agreement was reached.