The bargain retailer Big Lots, which declared bankruptcy in September, has come to an agreement that would preserve the operations of hundreds of its retail locations and warehouses.
Big Lots said on Friday that it will be sold to Gordon Brothers Retail Partners, a company that focuses on troubled businesses.
Later, Big Lots’ stores, warehouses, and other assets will be turned over to other retailers by Gordon Brothers.
Variety Wholesalers Inc., which now operates over 400 bargain stores in the Southeast and Mid-Atlantic regions of the United States, intends to purchase 200 to 400 Big Lots locations and run them under the Big Lots name.
Additionally, Variety Wholesalers will purchase a maximum of two distribution facilities.
Bruce Thorn, president and CEO of Big Lots, said that the sale agreement and transfer offer the best chance to protect jobs, increase estate value, and maintain the Big Lots brand.
“We appreciate our colleagues nationwide for their perseverance and fortitude during this process.”
Big Lots is a retailer of furniture, household goods, and other things in Columbus, Ohio.
Laptops 1000When it declared bankruptcy in September, it claimed that consumers had reduced their purchases of home and seasonal goods, which account for a large portion of the chain’s sales, due to inflation and high loan rates.
Big Lots intended to sell its current operations and assets to Nexus Capital Management, a private equity firm, at that time.
However, Big Lots announced on December 20 that the Nexus purchase had fallen through. It then conducted going-out-of-business sales at its 869 U.S. sites in collaboration with Gordon Brothers.
