Big Lots saved — retailer to acquire about half the company’s stores

After announcing all its stores would close and a bankruptcy claim, Big Lots has struck a deal that appears to save about half of its stores.

Big Lots made a sale transaction with Gordon Brothers Retail Partners that permits the transfer of the company’s assets — including stores, distribution centers and intellectual property — to other retailers and companies, according to a Big Lots press release issued Friday.

One of those companies will be Variety Wholesalers, Inc., which owns more than 400 retail stores in the Southeast and Mid-Atlantic United States under Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain Town banners.

Variety Wholesalers is expected to acquire between 200 and 400 Big Lots stores with plans to operate under the Big Lots brand moving forward, and as many as two distribution centers, the statement reads.

Big Lots’ website indicates there are 904 stores nationwide.

Variety Wholesalers might also employ Big Lots associates at these acquired stores and distribution centers and corporate associates “needed to support the go-forward footprint.”

“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 President and Chief Executive Officer Bruce Thorn said in the release. “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.”

Big Lots has been spending months working through Chapter 11 bankruptcy processes while seeking mergers and announcing various closures.

Speculation of the company’s bankruptcy circulated earlier in the year when Big Lots announced plans to close between 35 and 40 stores by the end of 2024, according to federal filings.

The number of closures skyrocketed to nearly 300 locations by August. At that time, the company listed 1,389 stores in operation, MassLive previously reported.

Massachusetts currently has 17 Big Lots locations. The stores listed as closing in August and September are no longer included on the store’s locator page.

Big Lots officially filed for bankruptcy in September and announced plans to sell the business to an affiliate of Nexus Capital Management LP, citing struggles with high inflation and interest rates as the reasons behind the company’s struggling financing.

Before the announcement of its Gordon Brothers partnership, the business said on Dec. 19 that it was closing all its stores and hosting going-out-of-business (GOB) sales at all 960 Big Lots locations nationwide after a failed merger with Nexus Capital Management.

Big Lots even sent an email to customers Saturday morning advertising 25% off the entire store due to “All Stores Closing!”