Some Big Lots stores will remain open if bankruptcy court approves deal with new buyer

National retailer Big Lots, which is based in Columbus, Ohio, announced this week that it has found a buyer that will keep at least 200 stores open, while also possibly keeping some staff intact.

Earlier this month, Big Lots announced that it would begin holding Going Out of Business (GOB) sales at all of its remaining stores after failing to reach a purchase agreement with Nexus Capital Management.

Now, the discount retailer has reached a deal with Gordon Brother Retail Partners, LLC, which enables the transfer of Big Lots’ assets, which include stores, distribution centers and intellectual property, to other retailers and companies.

One of those companies that will acquire the assets is Variety Wholesalers, Inc., which owns over 400 retail stores in the Southeast and Mid-Atlantic U.S. under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain Town banners.

BIG LOTS TO START HOLDING ‘GOING OUT OF BUSINESS’ SALES AT REMAINING LOCATIONS

Variety Wholesalers is looking to acquire between 200 and 400 Big Lots stores, which it will continue to operate under the Big Lots brand, as well as two distribution centers.

Big Lots said in a press release that Variety Wholesalers "may" employ Big Lots associates at the acquired stores and distribution centers, as well as some corporate associates.

"The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team," Big Lots President and CEO Bruce Thorn said. "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."

BIG LOTS TO SHUTTER MORE THAN 50 RETAIL LOCATIONS

Big Lots did not respond to FOX Business’ request for additional information.

The agreement between Big Lots and Gordon Brothers Retail Partners is subject to approval by the bankruptcy court.

Big Lots launched Chapter 11 bankruptcy proceedings in early September to help facilitate the sale of "substantially all" of its assets to its "stalking horse bidder" Nexus Capital Management.

BIG LOTS FILES FOR BANKRUPTCY, WILL CLOSE SOME STORES AMID SALE TO INVESTMENT FIRM

The discount retailer said at the time that its board had concluded that "entering into the Sale Agreement with Nexus, and initiating a court-supervised sale process, is the best path forward to maximize value and ensure continued operations." Nexus must be the winning bidder of a court-supervised auction for the transaction to close.

Prior to filing Chapter 11, Big Lots told the Securities and Exchange Commission it planned to close 35–40 stores, which quickly grew to hundreds. The retailer operates around 1,400 stores across the U.S. and employs over 30,000 workers.

In the Chapter 11 filing in September, Big Lots said there would be additional store closures, and in October, it announced that another 50 stores would be shuttering.

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The discount retailer is known for selling home goods, furniture, seasonal decorations and other products.

In the second quarter, Big Lots generated $1.05 billion in net sales, more than an 8% decline, compared to the same three-month period last year. Its quarterly net loss was nearly $238.46 million.

FOX Business’ Pilar Arias contributed to this report.