Big Lots isn’t going away, after all. The discount retailer has announced a pivotal sale transaction with Gordon Brothers Retail Partners, LLC, marking a significant step in the company's efforts to stabilize its operations amid financial challenges.
Under the agreement, Big Lots will transfer its assets, including its stores, distribution centers, and intellectual property, to other retailers, notably Variety Wholesalers, Inc. This strategic move aims to preserve the Big Lots brand and secure jobs for its employees.
Variety Wholesalers, a company that operates over 400 retail stores across the Southeast and Mid-Atlantic states, plans to acquire between 200 and 400 Big Lots stores. These stores will continue to operate under the Big Lots brand, ensuring continuity for customers and employees alike.
Additionally, Variety Wholesalers intends to acquire up to two distribution centers and may employ Big Lots associates at these locations, as well as certain corporate staff essential for supporting the ongoing operations.
‘Favorable and significant achievement’
"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,” said Big Lots CEO Bruce Thorn. “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."
Rick Edwards, head of North America Retail at Gordon Brothers Retail Partners, echoed this sentiment, highlighting the partnership's potential to maintain Big Lots' reputation for offering extreme bargains and an outstanding shopping experience.
The change in fortune pulls the discount brand back from the brink of extinction. In August, Big Lots announced it would close 300 stores after previously saying only 40 locations would be shuttered. The announced closings were estimated to shrink the chain’s footprint by 21%.
December setback
However, in mid-December hopes were dashed when Big Lots announced it no longer expected to finalize its previously announced asset purchase agreement with Nexus Capital Management. With that avenue closed, the company announced its stores would launch going-out-of-business sales as it wound down operations.
With the new deal, Lisa Seigies, CEO of Variety Wholesalers, expressed enthusiasm about the future.
"We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” she said. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead."
The transaction is pending approval by the bankruptcy court and is subject to customary closing conditions.