In September, the American discount retailer Big Lots filed for bankruptcy protection, but has now reached an agreement to retain its hundreds of stores and distribution centers.
On Friday (December 27th), Big Lots announced that it will be sold to Gordon Brothers Retail Partners, a company specializing in handling distressed businesses. Gordon Brothers will then transfer Big Lots’ stores, distribution centers, and other assets to other retailers.
Variety Wholesalers Inc., a company with over 400 discount stores in the Southeastern and Mid-Atlantic regions of the United States, plans to acquire 200 to 400 Big Lots stores and will retain the Big Lots brand. Variety Wholesalers will also purchase up to two distribution centers.
Bruce Thorn, the President and CEO of Big Lots, stated in a release, “This sales agreement and transfer provide an excellent opportunity to preserve jobs, maximize asset value, and ensure the continuity of the Big Lots brand. We thank all our employees nationwide for their courage and resilience throughout this process.”
Headquartered in Columbus, Ohio, Big Lots sells furniture, home decor, and other goods. The company cited inflation and high interest rates as reasons for the bankruptcy filing in September, as sales of home goods and seasonal items – crucial components of its revenue – were sluggish.
Initially, Big Lots planned to sell its assets and ongoing business operations to the private equity firm Nexus Capital Management, but on December 20th, the deal with Nexus fell through. Subsequently, the company partnered with Gordon Brothers to conduct liquidation sales at its 869 U.S. stores.
(Reference: CBS, Associated Press)