Big Lots has recently announced a strategic agreement with Gordon Brothers Retail Partners to sell its stores, distribution centers, and intellectual property to various retailers, including Variety Wholesalers. The goal of this move is to maintain the Big Lots brand and secure some outlets and jobs in the process.
Variety Wholesalers, a privately-owned company, is set to acquire between 200 to 400 Big Lots stores, two distribution centers, and will retain the associates who will continue operating under the Big Lots brand. This acquisition comes at a time when Big Lots, based in Columbus, Ohio, has filed for bankruptcy under Chapter 11 and is planning to close approximately 20% of its 1,400 outlets across the United States.
In September, Big Lots secured $707.5 million in funding to support its operations and facilitate the sale of its business to private equity firm Nexus Capital. CEO Bruce Thorn expressed that this sale agreement and transfer represent the best opportunity to preserve jobs, maximize value for the estate, and ensure the continuity of the Big Lots brand.
The retailer, which currently employs over 30,000 workers, has been facing challenges with declining sales in recent quarters, leading to pressure on its financial position. Despite these difficulties, the company is taking proactive steps to navigate the changing retail landscape and ensure the sustainability of its business moving forward.
