After filing for bankruptcy in September, Big Lots has managed to secure an agreement that will keep a large number of its stores open. On Friday, the retailer announced a strategic collaboration with Gordon Brothers Retail Partners, a Boston-based asset liquidation firm. This deal will see between 200 and 400 Big Lots locations transferred to Variety Wholesalers, Inc.
Variety Wholesalers, headquartered in Hendersonville, North Carolina, operates over 400 stores across the Mid-Atlantic and Southeast regions. Among its brands are Roses, Roses Express, Maxway, Bill’s Dollar Stores, and Bargain Town. With this acquisition, Variety Wholesalers intends to continue running these locations under the Big Lots brand. There’s potential for current Big Lots employees to remain on board at the stores and possibly at one or two of the Big Lots distribution centers that Variety Wholesalers plans to acquire, as shared in a press release by the companies.
The agreement involves handing over key assets of Big Lots, which includes not just the stores but also distribution centers and intellectual property. Of course, this transition depends on the nod of approval from the bankruptcy court.
Bruce Thorn, the CEO of Big Lots, expressed a sense of accomplishment regarding the deal. He said, “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.”
There had been a time when prospects looked bleak for Big Lots, with plans to close all stores after a potential sale to Nexus Capital Management didn’t pan out. The company, amid the bankruptcy proceedings, had earlier announced the closure of over 340 stores out of the 1,300 plus locations it had throughout the U.S. by March 2024.
These troubles have unfolded against a backdrop of a tough retail market, which has recently seen The Container Store seek bankruptcy protection and Party City also shutting doors after filing for bankruptcy.
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This piece was originally shared on USA TODAY: Big Lots closing stores: Gordon Brothers deal keeps up to 400 open.
