Discount chain Big Lots, which filed for bankruptcy in September, has reached a deal that will keep hundreds of its stores and distribution centers open.
Big Lots said Friday it will be sold to Gordon Brothers Retail Partners, a firm specializing in distressed businesses. Gordon Brothers will then transfer the Big Lots stores, distribution centers and other assets to other retailers.
Variety Wholesalers Inc., which owns more than 400 discount stores in the Southeast and Mid-Atlantic regions of the US, plans to acquire 200 to 400 Big Lots stores and operate them under the Big Lots brand. Variety wholesalers will also acquire up to two distribution centers.
“This sale and transfer agreement presents the strongest opportunity to preserve jobs, maximize estate value and ensure the continuity of the Big Lots brand,” said Big Lots President and CEO Bruce Thorn. in a statement. “We are grateful to our associates across the country for their courage and resilience during this process.”
Big Lots, based in Columbus, Ohio, sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates caused consumers to pull back on purchases of household and seasonal products, two categories the chain relies on for a significant part of their income.
At the 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 did not materialize. It then partnered with Gordon Brothers to conduct exit sales at its 869 U.S. locations.