US-based discount retailer Big Lots has signed a sales agreement with Gordon Brothers Retail Partners, securing the future of the brand and several jobs.
The two sides reached an agreement for the deal at the end of 2024.
This strategic move will allow Variety Wholesalers to acquire several retail outlets, ranging from 200 to 400 stores, and possibly even two distribution centers.
Variety Wholesalers, owner of more than 400 stores in the U.S., will continue to operate the acquired stores under the Big Lots banner.
The acquisition also opens up the opportunity for Variety Wholesalers to retain Big Lots employees at both the store and distribution center levels, as well as select personnel essential to supporting the stores’ ongoing operations.
Big Lots President and CEO Bruce Thorn said, “The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a beneficial and significant achievement for Big Lots that reflects the tireless work and collective effort of our team.
“This sale agreement and transfer provides the greatest opportunity to retain jobs, maximize value to the estate and ensure the continuity of the Big Lots brand. We are grateful to our employees across the country for their perseverance and resilience during this process.”
At the time of the bankruptcy filing, the company was one of America’s leading home goods retailers, with 1,300 locations nationwide, annual sales of more than $4.7 billion and a workforce of more than 27,000.
The final agreement with Gordon Brothers is expected to save between 5,000 and 10,000 jobs while keeping the Big Lots brand operational, as reported by Reuters.
Big Lots had proactively filed for Chapter 11 protection in September 2024 in the U.S. Bankruptcy Court in Delaware.
This action was intended to streamline the transfer of its assets and maintain business continuity under the wings of Nexus Capital Management.
Despite obtaining preliminary court approval for immediate access to a substantial portion of debtor-in-possession financing worth $707.5 million, the company’s deal with Nexus Capital ultimately unraveled last month.
This led to liquidation sales in approximately 900 stores as part of preparations for a possible complete closure.
Gordon Brothers North America retail partners head Rick Edwards said: “We are pleased to reach this strategic agreement with Big Lots and work with Variety Wholesalers to achieve a path forward that will allow Big Lots to continue serving customers with extreme bargains and an excellent shopping experience.”
