Big Lots, a discount chain that filed for bankruptcy protection in September, has reached 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, instead of private equity firm Nexus Capital Management, with plans to transfer assets to other retailers. Variety Wholesalers Inc., which owns more than 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, intends 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, ensuring the continuity of the Big Lots brand and preserving jobs.
Big Lots, based in Columbus, Ohio, sells furniture, home decor, and other items. The company cited inflation and high interest rates as reasons for consumer pullback, particularly in the home and seasonal product categories, affecting a significant portion of its revenue. Initially planning to sell assets and business operations to Nexus Capital Management, the deal did not materialize, leading Big Lots to partner with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. locations. The agreement with Gordon Brothers provides the best opportunity for job preservation, maximizing value for the estate, and maintaining the Big Lots brand.
The ongoing business operations of Big Lots will be maintained under the ownership of Variety Wholesalers Inc., with plans to operate acquired stores under the Big Lots brand. This acquisition will strengthen Variety Wholesalers’ presence in the discount retail market, expanding its reach and providing a boost to its existing portfolio of discount stores in the U.S. Southeast and Mid-Atlantic regions. By acquiring Big Lots stores and distribution centers, Variety Wholesalers aims to leverage the well-known brand and existing customer base to drive growth and profitability in the discount retail sector.
The partnership between Big Lots and Gordon Brothers Retail Partners ensures a path forward for the discount chain amid financial challenges. By selling stores and distribution centers to a well-established retail firm, Big Lots can continue to operate under new ownership while preserving jobs and retaining the Big Lots brand. The agreement with Variety Wholesalers Inc. solidifies plans for acquiring and operating Big Lots stores, expanding their network and market presence in key regions of the U.S., enabling the discount chain to remain operational and retain its customer base.
Big Lots’ announcement of the deal with Gordon Brothers Retail Partners marks a significant turning point in the company’s bankruptcy proceedings. The new agreement provides a roadmap for the future of the discount chain, with a focus on job preservation, value maximization, and brand continuity. By partnering with Gordon Brothers and Variety Wholesalers, Big Lots can transition ownership seamlessly while maintaining operations and securing a strong position in the competitive retail market. The acquisition of Big Lots stores and distribution centers by Variety Wholesalers highlights the strategic expansion plans of the discount retailer in key regions, setting the stage for growth and success in the discount retail sector.
