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Big Lots spared from possible closure after fellow retail company steps in

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Big Lots spared from possible closure after fellow retail company steps in

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After Big Lots launched nationwide going-out-business sales earlier this month, the big box retailer has been given new life. 

Big Lots announced Friday that it had agreed to a sale transaction with Gordon Brothers Retail Partners, which means the sparing of hundreds of Big Lots stores.

The post-Christmas announcement came after Big Lots officials earlier this month said they did not anticipate completing a potential asset purchase agreement with Nexus Capital Management.

Big Lots officials said its goal was to complete a sale to Nexus or another party by early January, with CEO Bruce Thorn saying the closures could be reversed if a company sale was completed.

Meanwhile, going-out-of-business sales began at over 960 Big Lots locations to protect the value of its estate, the company said.

The transaction with Gordon Brothers enables the transfer of Big Lots assets, including stores, distribution centers, and intellectual property, to other retailers and companies. 

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

Variety Wholesalers intends to acquire between 200 and 400 Big Lots stores, and plans to operate under the Big Lots brand moving forward, and up to two distribution centers.

The announcement did not include mention of the Big Lots store in Hesperia, or the store and shuttered distribution center in Apple Valley. 

Additionally, Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forward footprint, company officials stated.

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“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 Bruce Thorn said. “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.”

Rick Edwards, Gordon Brothers Retail Partners’ Head of North America Retail, echoed Thorn’s statement.

“We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience,” Edwards said.

“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” said Variety Wholesalers President and CEO Lisa Seigies. “We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”

The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.

Daily Press reporter Rene Ray De La Cruz may be reached at RDeLaCruz@VVDailyPress.com. Follow him on X @DP_ReneDeLaCruz

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