Big Lots reaches deal to keep hundreds of US stores open
By Dee-Ann Durbin | The Associated Press
The discount chain Big Lots, which filed for bankruptcy protection in September, has reached a deal that will keep hundreds of its stores and distribution centers open.
Big Lots said Friday it will be sold to Gordon Brothers Retail Partners, a firm that specializes in distressed companies. Gordon Brothers will then transfer Big Lots’ stores, distribution centers and other assets to other retailers.
Variety Wholesalers Inc., which owns more than 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand. Variety Wholesalers will also acquire 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,” Big Lots President and CEO Bruce Thorn said in a statement. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Columbus, Ohio-based Big Lots sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates caused consumers to pull back on their purchases of home and seasonal products, two categories the chain depends on for a significant part of its revenue.
At the time, Big Lots planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
But on Dec. 20, Big Lots said the deal with Nexus didn’t materialize. It then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. locations.