(LOOTPRESS) – Big Lots, Inc. has announced a sale agreement with Gordon Brothers Retail Partners, LLC, that will transfer the company’s assets—including stores, distribution centers, and intellectual property—to other retailers.
Variety Wholesalers, Inc., which operates over 400 retail locations in the Southeast and Mid-Atlantic under banners such as Roses, Maxway, and Bargain Town, plans to acquire between 200 and 400 Big Lots stores as part of the transaction.
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Variety Wholesalers will continue to operate the acquired stores under the Big Lots brand and may also take over up to two distribution centers.
Additionally, the company intends to employ Big Lots associates at the stores and distribution centers, as well as select corporate staff needed to support ongoing operations.
The sale comes after Big Lots faced significant challenges following its Chapter 11 bankruptcy filing in September. At the time of the filing, the company operated more than 1,300 locations and employed over 27,000 workers.
Big Lots had been negotiating a potential sale with Nexus but was forced to abandon the deal when an inventory appraisal came in lower than expected, Bloomberg News reported.
The unfavorable appraisal made the economics of the Nexus sale no longer viable.
With the Nexus deal off the table, Big Lots announced plans to begin going-out-of-business sales at approximately 870 locations while advisers searched for an alternative transaction to save a portion of the stores.
Judge J. Kate Stickles, who is overseeing the Chapter 11 case, emphasized the urgency of finding a resolution, warning that the company had little time to secure a new deal.
Big Lots President and CEO Bruce Thorn called the sale agreement a 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. 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,” Thorn said.
Rick Edwards, Head of North America Retail for Gordon Brothers, added, “We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience.”
Lisa Seigies, President and CEO of Variety Wholesalers, echoed the positive outlook.
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead,” Seigies said.
The agreement remains subject to approval by the Bankruptcy Court and other customary closing conditions.
