The discount retailer Big Lots has struck a deal to preserve hundreds of its stores and distribution centers after filing for bankruptcy protection in September. The company announced Friday that it would be sold to Gordon Brothers Retail Partners, a firm known for managing distressed companies.
Under the agreement, Gordon Brothers will oversee the transfer of Big Lots’ assets, including stores and distribution centers, to other retailers. Variety Wholesalers Inc., a discount chain operator with over 400 locations in the U.S. Southeast and Mid-Atlantic, plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots name. Additionally, Variety Wholesalers will take control of up to two distribution centers.
“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,” said Big Lots President and CEO Bruce Thorn. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Big Lots, headquartered in Columbus, Ohio, specializes in furniture, home decor, and seasonal items. The retailer cited inflation and high interest rates as major factors in its September bankruptcy filing, which impacted consumer spending on its key product categories.
Initially, Big Lots planned to sell its assets to private equity firm Nexus Capital Management. However, after that deal fell through, the company partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 locations.
With the new agreement, hundreds of Big Lots stores will remain open, ensuring the continuity of the brand and preserving jobs across the country.