COLUMBUS, Ohio (AP) — Big Lots Inc. has secured a deal with Gordon Brothers Retail Partners LLC that could save up to 400 stores and preserve the brand, marking a crucial turning point for the retailer that filed for bankruptcy in September.
The agreement, announced Thursday, involves Variety Wholesalers Inc., a southeastern discount chain operator, acquiring between 200 and 400 Big Lots locations. The potential buyer intends to maintain the Big Lots brand name and retain employees from the purchased stores, distribution centers, and corporate offices.
“This represents the best opportunity to save jobs, maximize asset value, and continue the Big Lots brand,” said Bruce Thorn, President and CEO of Big Lots.
The deal comes after an earlier sale to Nexus Capital Management LP collapsed due to lower-than-expected inventory appraisals. Following that setback, Big Lots began liquidation sales at approximately 870 of its 1,300 locations while searching for alternative buyers.
The transaction requires approval from a Delaware bankruptcy court judge, with a hearing scheduled for Monday. Judge J. Kate Stickles has emphasized the urgency of securing a new buyer to preserve the business.
Big Lots employed 27,000 people when it filed for Chapter 11 protection. The company has struggled amid changing retail patterns and increased competition from other discount retailers.
Under the proposed agreement, Gordon Brothers will facilitate the transfer of Big Lots’ brand, stores, and distribution centers to other operators. Variety Wholesalers’ involvement could significantly reduce the number of store closures initially expected when the company entered bankruptcy proceedings.
The retail chain’s troubles reflect broader challenges facing traditional brick-and-mortar retailers as consumer shopping habits continue to evolve. Big Lots has particularly struggled to compete with both online retailers and other discount chains that have successfully adapted to changing market conditions.
If approved, the deal would represent one of the larger retail preservation efforts in recent years, potentially saving thousands of jobs across multiple states. The outcome of Monday’s court hearing could determine the future of one of America’s largest discount retail chains.
