Big Lots, the discount retail chain, has struck a deal to keep hundreds of its stores open, preserving thousands of jobs. The company, which filed for bankruptcy in September, announced on Friday (December 27) that it reached an agreement with Gordon Brothers Retail Partners. This deal will transfer Big Lots’ assets, including stores and distribution centers, to other retailers, notably Variety Wholesalers, Inc.
Variety Wholesalers, which operates over 400 stores under brands like Bargain Town and Bill’s Dollar Stores, plans to acquire between 200 and 400 Big Lots locations and up to two distribution centers. The stores will continue to operate under the Big Lots brand. This agreement aims to preserve jobs and maintain the brand’s presence in the market.
Big Lots’ President and CEO, Bruce Thorn, expressed gratitude to the company’s associates for their resilience, stating, “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.”
The deal comes after a failed acquisition by Nexus Capital Management, which led to plans for closing all remaining 963 locations. The new agreement could prevent layoffs for thousands of employees, although the exact number of jobs saved remains unclear. The sale is pending approval from the Bankruptcy Court and other closing conditions.
Big Lots faced financial challenges due to high inflation and interest rates, which impacted consumer spending on home and seasonal products. The sale agreement offers a strategic path forward for the company, allowing it to continue serving customers with value-driven products.
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