Discount chain Big Lots, which filed for bankruptcy protection in September, has reached a deal that will keep hundreds of its stores and distribution centers open.
Big Lots said Friday it would be sold to Gordon Brothers Retail Partners, which specializes in distressed companies. Gordon Brothers will then transfer Big Lots' stores, distribution centers and other assets to other retailers.
Variety Wholesalers Inc., which has more than 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, plans to acquire 200 to 400 Big Lots stores and operate them under the Big Lots brand. A variety of wholesalers will also take over two distribution centers.
“This sale agreement and transfer provides the strongest opportunity to preserve jobs, maximize the value of the property, and ensure the continuity of the Big Lots brand,” Big Lots Chairman and CEO Bruce Thorn said in a statement. “We are grateful to our partners across the country for their patience and flexibility throughout this process.”
Columbus, Ohio-based Big Lots sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates had caused consumers to pull back from purchasing household and seasonal products, two categories on which the chain depends for a significant portion of its revenue.
At that time, Big Lots planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
But on December 20, Big Lots said the deal with Nexus was not successful. It then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 US locations.