Big Lots, which filed for bankruptcy in September, has reached a deal to keep hundreds of its stores open.
The retailer on Friday announced a transaction with Boston-based asset liquidation firm Gordon Brothers Retail Partners resulting in the transfer of 200 to 400 Big Lots stores to Variety Wholesalers, Inc.
Variety Wholesalers of Hendersonville, North Carolina owns more than 400 stores in the Mid-Atlantic and Southeast; among the chains it operates are Roses, Roses Express, Maxway, Bill’s Dollar Stores, and Bargain Town.
Variety Wholesalers plans to operate the stores acquired in the deal under the Big Lots brand and may employ current Big Lots employees at the stores and the one or two of Big Lots distribution centers it plans to acquire, according to a press release from the companies.
The transaction includes the transfer of Big Lots assets, including stores, distribution centers, and intellectual property, the companies said. The agreement is subject to approval by the bankruptcy court.
“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,” Big Lots CEO Bruce 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. We are grateful to our associates nationwide for their grit and resilience throughout this process.”
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Big Lots recently announced plans to close all of its stores after a potential sale to Nexus Capital Management fell through.
Prior to that, Big Lots had been closing some stores as it went through the bankruptcy process, announcing plans to close more than more than 340 stores. The company had more than 1,300 stores across the U.S. as of March 2024.
Big Lots struggles come amid a challenging retail environment leading to The Container Store filing for bankruptcy protection less than a week ago and Party City also going out of business and filing for bankruptcy.
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This article originally appeared on USA TODAY: Big Lots closing stores: Gordon Brothers deal keeps up to 400 open
