Big Lots, a US-based discount retailer, has concluded its sales agreement with Gordon Brothers Retail Partners, securing the future of the brand and several jobs.
The two parties have reached an agreement for the deal at the end of 2024.
This strategic move allows Variety Wholesalers to take into account multiple points of sale, ranging from 200 to 400 stores, and potentially up to two distribution centers.
Variety Wholesalers, which owns more than 400 retail stores in the United States, will continue to operate the acquired stores under the Big Lots banner.
The acquisition also opens the possibility for Variety Wholesalers to retain Big Lots employees at both the warehouse and distribution center levels, as well as to select essential corporate personnel to support the ongoing operations of the stores.
Big Lots President and CEO Bruce Thorn 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 and transfer agreement presents the strongest opportunity to preserve jobs, maximize value for the estate and ensure the continuity of the Big Lots brand. We are grateful to our associates across the country for their commitment and resistance throughout this process.”
At the time of its bankruptcy filing, the company was one of America’s leading home goods retailers, boasting 1,300 locations nationwide, annual revenues exceeding $4.7 billion, and a workforce of work that exceeds 27,000 individuals.
The deal finalized with Gordon Brothers is expected to save between 5,000 and 10,000 jobs while keeping the Big Lots brand operational, as reported by Reuters.
Big Lots had proactively filed for Chapter 11 protection in the US Bankruptcy Court of Delaware in September 2024.
This action was intended to simplify the transfer of its assets and maintain business continuity under the wing of Nexus Capital Management.
Despite assured interim court approval for immediate access to a substantial portion of its $707.5 million debtor-in-possession financing, the company’s deal with Nexus Capital finally cleared last month.
This has led to liquidation sales at around 900 stores as part of preparations for a potential large-scale closure.
Gordon Brothers North America, sales partners of Rick Edwards said: “We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path that allows Big Lots to continue to serve customers with extreme business and exceptional shopping experience.”
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2025-01-06 10:25:00
