Hundreds of Big Lots’ stores and delivery facilities will remain open as a result of an agreement negotiated by the discount retailer, which filed for bankruptcy protection in September.
Big Lots said on Friday that it will be sold to Gordon Brothers Retail Partners, a company that focuses on troubled businesses. After that, Big Lots stores, warehouses, and other assets will be turned over to other retailers by Gordon Brothers.
Variety Wholesalers Inc., which now operates over 400 bargain stores in the Southeast and Mid-Atlantic regions of the United States, intends to purchase 200 to 400 Big Lots locations and run them under the Big Lots name. Additionally, Variety Wholesalers will purchase a maximum of two distribution facilities.
According to a statement from Bruce Thorn, president and CEO of Big Lots, this sale agreement and transfer offer the best chance to protect jobs, increase estate value, and guarantee the Big Lots brand’s survival. We appreciate the perseverance and fortitude of our colleagues across the country during this process.
Based in Columbus, Ohio Big Lots sells a variety of goods, including furniture and home décor. When it declared bankruptcy in September, it claimed that shoppers had reduced their purchases of seasonal and household goods, two areas that account for a sizable portion of the chain’s sales, due to inflation and rising loan rates.
Big Lots intended to sell its current operations and assets to Nexus Capital Management, a private equity firm, at that time.
However, Big Lots stated that the Nexus deal did not go through on December 20. It then conducted going-out-of-business sales at its 869 U.S. sites in collaboration with Gordon Brothers.
Since July, the business has shut down nine locations in Oregon. The state’s remaining locations are in Medford, Roseburg, Klamath Falls, Hermiston, and Bend.
— The Associated Press’s Dee-Ann Durbin
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