Big Lots saves jobs by reaching deal to keep hundreds of stores open

Big Lots! will live to see another day of reduced overstock.

The discount retail chain was all set to close its stores, but on Friday announced that it had reached a deal with Gordon Brothers Retail Partners to keep hundreds of its stores open, reports the AP. This news likely comes as a relief to employees and patrons in the midst of the holiday season.

Big Lots had filed for bankruptcy in October with plans to be sold to Nexus Capital Mangagement, and was in the process of liquidating its stock with the aim to closing in 2025. 

But the Nexus deal never happened as of Dec. 20. Instead, Big Lots will be sold to Gordon Brothers, which specializes in distressed companies, which  will then transfer Big Lots’ stores, distribution centers and other assets to other retailers. Going-out-of-business sales will be conducted at 869 U.S. locations. Part of the plan includes Variety Wholesalers Inc. acquiring between 200 and 400 Big Lots stores to operate under the Big Lots brand, in addition to acquiring up to two distribution centers

“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,” Big Lots President and CEO Bruce Thorn said in a statement. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”

Another discount retailer, 99 Cents Only stores, had also filed for bankruptcy earlier this year, finding it difficult to compete with bigger retailers like Walmart and Target. Shortly afterward, Dollar Tree purchased hundreds of 99 Cents Only stores to reopen as Dollar Trees.