Big Lots will no longer close all of its remaining stores after reaching an agreement on a sale this week.
The national retailer announced on Friday, December 27, that it had reached an agreement that will save hundreds of stores, thousands of jobs, and keep the brand alive.
According to the agreement, Big Lots will transfer assets to Gordon Brothers Retail Partners, LLC, such as stores, distribution centers, and intellectual property, to other retailers, including Variety Wholesalers, Inc. Variety Wholesalers, another national retailer, intends to acquire 200 to 400 Big Lots stores as well as up to two distribution centers and operate them under the Big Lots brand.
“This sale agreement and transfer provide the best opportunity to preserve jobs, maximize estate value, and ensure the Big Lots brand’s continuity.
“We are grateful to our associates nationwide for their tenacity and resilience throughout this process,” said Bruce Thorn, Big Lots’ president and CEO.
Big Lots filed for Chapter 11 bankruptcy in September, citing declining sales, a challenging retail landscape, and “a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items.” Following a failed sale to Nexus Capital Management, the company announced last week plans to close its remaining 900 stores.
Faced with bankruptcy, Big Lots has already closed 300 stores across the country, including 11 in Michigan. There are still 30 Big Lots stores in Michigan.
It is unclear which stores will be saved, but the sale agreement will prevent hundreds of stores from closing.
“We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience,” stated Rick Edwards, Gordon Brothers Retail Partners’ Head of North America Retail.
The sale is currently pending Bankruptcy Court approval and other closing conditions.
