Big Lots has reached a deal to keep hundreds of its stores open amid its bankruptcy process. The retail chain previously announced that it would shut down all its stores after filing for Chapter 11 bankruptcy in September. However, on Friday, the company landed a transaction with Gordon Brothers Retail Partners that could save up to 400 of its locations.
Big Lots reaches deal to save hundreds of stores amid bankruptcy
Friday's transaction with the Boston-based asset liquidation firm would result in the transfer of 200 to 400 Big Lots stores to Variety Wholesalers, Inc. When the company filed for bankruptcy, it had over 1,300 stores across the United States. However, the retail giant has since shut down over 400 stores, with its latest round of closures in October.
Variety Wholesalers, which owns more than 400 stores in the Mid-Atlantic and Southeast, plans to operate the recently acquired stores under the Big Lots brand. The North Carolina-based company may also employ current Big Lots employees at the stores and one or two of the Big Lots distribution centres it plans to acquire, according to a press release, USA Today reported.
“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,” Big Lots CEO Bruce Thorn said in a statement. However, the agreement is subject to approval by the bankruptcy court.
{{/usCountry}}“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,” Big Lots CEO Bruce Thorn said in a statement. However, the agreement is subject to approval by the bankruptcy court.
{{/usCountry}}“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,” Thorn added.
Meanwhile, Variety Wholesalers’ president and CEO Lisa Seigies said in a statement, “We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”