Bankrupt discount retailer Big Lots says it will be able to keep hundreds of its stores open under a new sale transaction through Boston asset management firm Gordon Brothers Retail Partners. Photo courtesy Big Lots Inc./
PRNewswireDec. 28 (UPI) — Bankrupt discount retail chain Big Lots says it will be able to keep hundreds of its stores open after executing a strategic sale transaction with a Boston asset management firm.
Columbus, Ohio-based Big Lots announced Friday it has agreed to a sale with Gordon Brothers Retail Partners enabling the transfer of Big Lots assets — including stores, distribution centers, and intellectual property — to other retailers and companies, including Variety Wholesalers Inc. of Henderson, N.C.
The move, which is subject to the approval of the bankruptcy court, comes just a week after the chain said it planned to close all 900 of its stores and sell off its inventory in the wake of failed sale to private equity firm Nexus Capital Management.
Under the new deal, Variety will acquire between 200 and 400 Big Lots stores, which it plans to continue to operate under the Big Lots brand, and up to two distribution centers. The buyer “may employ” Big Lots employees at the acquired stores and distribution centers, according to Big Lots President and CEO Bruce Thorn.
“The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team,” Thorn said in a statement. “This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand.”
Big Lots filed for Chapter 11 bankruptcy protection in September after revealing plans to close a third of its stores in a cost-cutting move.
Big Lots, often the anchor store in low-end strip malls, sells furniture, lawn and garden, apparel, health and beauty, and other consumer goods.
New buyer Variety Wholesalers owns more than 400 retail stores in the southeast and Mid-Atlantic United States under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain Town banners.
