Discount chain Big Lots, which filed for bankruptcy protection in September, has reached a deal to keep hundreds of its stores and distribution centers open.
The big picture: Big Lots will be sold to Gordon Brothers Retail Partners, who specialize in distressed companies, and then transfer its assets to other retailers.
- Variety Wholesalers Inc, which owns over 400 stores in the US Southeast and Mid-Atlantic regions, plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand.
- The sale agreement aims to preserve jobs, maximize value for the estate, and ensure continuity of the Big Lots brand.
Driving the news: Big Lots sells furniture, home decor, and other items and faced challenges due to inflation and high interest rates affecting consumer purchases.
- Initially planned to be sold to private equity firm Nexus Capital Management, the deal didn’t materialize, leading to the partnership with Gordon Brothers for going-out-of-business sales at its 869 US locations.
