Struggling discount retailer Big Lots has struck a last-minute rescue deal that could save hundreds of stores and thousands of jobs, just weeks after the chain filed for bankruptcy.
The Ohio chain signed an agreement with Gordon Brothers and Variety Wholesalers that should help keep hundreds of stores open and save thousands of jobs.
Under the agreement, Gordon Brothers would acquire the retailer and then transfer between 200 and 400 Big Lots stores and two distribution centers to Variety Wholesalers, which operates discount chains including Roses, Maxway and Bargain Town.
The stores would continue to operate under the Big Lots name.
The deal could be a potential lifeline for the bankrupt retailer as it appeared headed for total liquidation.
Yet the agreement leaves thousands of employees with uncertainty about their future jobs. The future of at least 27,700 employees remains unclear.
In the announcement, Big Lots said Variety “may” employ current employees at the saved locations, but did not confirm this.
Struggling discount retailer Big Lots has struck a last-minute rescue deal that could save hundreds of stores and thousands of jobs, just weeks after the chain filed for bankruptcy
“Variety Wholesalers may hire Big Lots associates at the acquired stores and distribution centers, as well as certain business associates necessary to support the future footprint,” the company wrote in a news release.
Bruce Thorn, President and Chief Executive Officer of Big Lots, said, “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.”
“This sale agreement and transfer provides the greatest opportunity to retain jobs, maximize value to the estate and ensure the continuity of the Big Lots brand,” he added.
The Ohio chain signed an agreement with Gordon Brothers and Variety Wholesalers to help keep hundreds of stores open and save thousands of jobs
“We are grateful to our employees across the country for their perseverance and resilience during this process.”
The agreement must still be approved by the bankruptcy court.
This comes just a week after the company announced a full list of all stores set to close.
The discount store chain filed for bankruptcy in September and has already closed hundreds of stores across the country.
In a press release issued earlier this month, the company said it would begin sales at its 963 remaining locations after a sale to a private equity firm fell through.
Big Lot has announced a full list of all the stores that are set to close.
The discount store chain filed for bankruptcy in September and has already closed hundreds of stores across the country.
In the announcement, Big Lots said Variety “may” employ current employees at the saved locations, but did not confirm this
In a press release yesterday, the company said it would begin sales at its 963 remaining locations after a sale to a private equity firm fell through.
Rick Edwards, head of North America Retail at Gordon Brothers Retail Partners, said the new deal would allow Big Lots to “continue serving customers with extreme bargains and an excellent shopping experience.”
Lisa Seigies, president and CEO of Variety Wholesalers, also expressed optimism about the acquisition.
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of IT stores,” said Seigies.
“We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”