By Laura Bailey
Big Lots, the national discount chain store that filed for bankruptcy in September, announced Friday that it has reached a strategic sale agreement with Gordon Brothers Retail Partners, a move that will allow hundreds of its stores to remain open.
“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,” Bruce Thorn, Big Lots’ president and chief executive officer, said.
“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.”
The deal enables the transfer of Big Lots’ assets, including stores, distribution centers and intellectual property, to other retailers and companies, including Variety Wholesalers, Inc., which operates more than 400 retail locations across the Southeast and Mid-Atlantic.
Variety Wholesalers plans to acquire between 200 and 400 Big Lots stores, which it intends to continue operating under the Big Lots brand. The acquisition also includes up to two Big Lots distribution centers.
In addition, Variety Wholesalers said it may employ Big Lots associates at the acquired stores and distribution centers, as well as some corporate staff to support the ongoing business.
The new agreement comes after Big Lots’ previous deal to be acquired by private-equity firm Nexus Capital Management fell through, leaving the company on the brink of closing its remaining 963 locations.
The closure of the Bristol Big Lots Store, located at 1235 Farmington Ave., was announced in October. A few weeks following the announcement of the location closing, the Bristol Store announced that it would remain open through the holiday.
On Dec. 19, the company announced that going out of business sales would be beginning at their remaining locations. The latest transaction with Gordon Brothers and Variety Wholesalers represents a pivotal opportunity to preserve thousands of jobs and maintain a significant portion of the Big Lots footprint.
Variety Wholesalers, which operates a network of discount retailers under brands such as Bargain Town, Bill’s Dollar Stores and Super 10 expressed excitement about the opportunity to help sustain the Big Lots brand.
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” Lisa Seigies, Variety Wholesalers’ president and CEO, said. “We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”
Rick Edwards, head of North America retail at Gordon Brothers Retail Partners, echoed Seigies’ sentiment, emphasizing the strategic nature of the deal.
“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,” he said.
Big Lots is one of the nation’s largest closeout retailers, offering deep discounts on products for the home, including furniture, décor, pantry items, and more.
The sale is subject to approval by the bankruptcy court and other customary closing conditions.
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