The discount chain Big Lots, which filed for bankruptcy protection reached a deal in September that will keep hundreds of stores and distribution centers open.
Big Lots said Friday it will be sold to Gordon Brothers Retail Partners, a firm that specializes in distressed companies. Gordon Brothers will then transfer Big Lots’ stores, distribution centers and other assets to other retailers.
Variety Wholesalers Inc., owner of more than 400 discount stores in the Southeast and Mid-Atlantic regions of the U.S., plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand. Variety Wholesalers will also acquire up to two distribution centers.
“This sale agreement and transfer provides the greatest opportunity to preserve jobs, maximize value to the estate and ensure the continuity of the Big Lots brand,” Bruce Thorn, president and CEO of Big Lots, said in a statement. “We are grateful to our employees across the country for their perseverance and resilience during this process.”
Columbus, Ohio-based Big Lots sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates were causing consumers to pull back on purchases of home and seasonal products, two categories on which the chain depends for a significant portion of its sales.
At the time, Big Lots planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
But on December 20, Big Lots said the deal with Nexus did not materialize. It then partnered with Gordon Brothers to conduct out-of-business sales at its 869 U.S. locations.