Big Lots has successfully secured a deal that allows it to keep hundreds of locations across the United States open, following its bankruptcy filing in September. The retailer will be sold to Gordon Brothers Retail Partners, a company that specializes in working with distressed businesses. This acquisition will facilitate the transfer of Big Lots’ stores and distribution centers to other retailers.
Variety Wholesalers Inc., which operates over 400 discount stores in the Southeastern and Mid-Atlantic regions, plans to take over between 200 and 400 Big Lots locations, maintaining the Big Lots brand in the process. Additionally, Variety Wholesalers will also acquire up to two of Big Lots’ distribution centers.
Bruce Thorn, President and CEO of Big Lots, expressed optimism, stating that this agreement will help preserve jobs and maximize the value of the company’s assets while ensuring the continuity of the Big Lots brand. Thorn acknowledged the hard work and resilience of Big Lots associates during this challenging time.
The Columbus, Ohio-based chain has faced significant challenges, particularly due to rising inflation and high-interest rates, which have led to a decline in customer spending on home and seasonal products—key categories for its revenue. Initially, Big Lots had intended to sell its operations to private equity firm Nexus Capital Management, but that deal fell through. Subsequently, they worked with Gordon Brothers to prepare for potential going-out-of-business sales at their 869 locations.
This development signifies a hopeful turnaround for Big Lots and suggests that with the support of strategic partners, the company might overcome its recent struggles and continue to serve its customers while retaining a workforce during challenging economic times.