The discount chain Big Lots, which filed for bankruptcy protection in September, has announced a deal that will keep hundreds of its stores and distribution centers open. The company will be sold to Gordon Brothers Retail Partners, a firm specializing in distressed companies, who will then transfer Big Lots’ assets to other retailers. Variety Wholesalers Inc., which owns over 400 discount stores, plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand. They will also acquire up to two distribution centers as part of the deal. Big Lots President and CEO Bruce Thorn expressed gratitude to the company’s associates for their resilience throughout the process.
Based in Columbus, Ohio, Big Lots is known for selling furniture, home decor, and other items. When it filed for bankruptcy, the company cited inflation and high interest rates as factors that caused a decline in consumer purchases of home and seasonal products, which are significant revenue drivers for the chain. The initial plan was to sell assets and business operations to private equity firm Nexus Capital Management, but the deal did not materialize. As a result, Big Lots partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 locations in the U.S.
The collaboration with Gordon Brothers allowed Big Lots to continue operations and preserve jobs while maximizing value for the estate and ensuring the continuity of the Big Lots brand. The sale agreement and transfer of assets present the strongest opportunity for the company to move forward and overcome the challenges it faced during bankruptcy. With Variety Wholesalers stepping in to acquire a substantial number of stores and distribution centers, there is hope for the revival of the brand and its presence in the discount retail market. The company’s leadership remains optimistic about the future and acknowledges the efforts of their associates in navigating through a challenging period.
The decision to sell to Gordon Brothers Retail Partners and transfer assets to other retailers marks a significant turning point for Big Lots as it emerges from bankruptcy proceedings. The new partnership with Variety Wholesalers Inc. sets the stage for a potential revitalization of the brand and its retail stores, providing a path for growth and stability in the future. The company’s leadership is focused on maintaining the loyalty of customers and ensuring a seamless transition for employees as the changes take place. With a renewed sense of determination and a strategic plan in place, Big Lots aims to emerge stronger from its financial difficulties and continue serving customers with quality products at discounted prices.
The agreement reached between Big Lots, Gordon Brothers, and Variety Wholesalers highlights the collaborative effort to save the chain from closure and secure the future of its stores and distribution centers. By leveraging the expertise of retail partners and capitalizing on the strengths of each company involved, Big Lots is positioned to overcome the challenges that led to its bankruptcy filing. With a clear focus on preserving jobs, maintaining value for stakeholders, and upholding the brand’s reputation, the company is on track to navigate through the complexities of restructuring and emerge as a resilient player in the discount retail industry. The strategic partnerships forged during this process demonstrate a commitment to innovation and adaptability in a rapidly changing market landscape.
In conclusion, the sale agreement between Big Lots, Gordon Brothers, and Variety Wholesalers represents a pivotal moment in the company’s journey towards financial stability and growth. As they work towards a successful transition and revitalization of the brand, Big Lots is poised to emerge from bankruptcy stronger and more resilient than before. With the support of its associates, customers, and retail partners, the company looks forward to a new chapter of continued success and sustainability in the discount retail sector.
