Some Big Lots stores may stay open amid bankruptcy

National retailer Big Lots, which is based in Columbus, Ohioannounced this week that it has found a buyer that will keep at least 200 stores open, and possibly keep some staff intact.

Earlier this month, Big Lots announced that it will begin holding Going Out of Business (GOB) sales at all of its remaining stores after failing to reach a purchase agreement with Nexus Capital Management.

Now, the discount retailer has reached an agreement with Gordon Brother Retail Partners, LLC, which allows the transfer of Big Lots’ assets, which include stores, distribution centers and intellectual property, to other retailers and companies.

One of those companies that will acquire the asset is Variety Wholesalers, Inc., which owns more than 400 retail stores in the Southeast and Mid-Atlantic US under Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain. Flags of the city.

LARGE LOTS TO START HOLDING “OUT OF BUSINESS” SALES IN REMAINING LOCATIONS

A Big Lots store in Los Angeles on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)

Variety Wholesalers is looking to acquire between 200 and 400 Big Lots stores, which will continue to operate under the Big Lots brand, as well as two distribution centers.

Big Lots said in a news release that Variety Wholesalers “may” employ Big Lots associates in the acquired stores and distribution centers, as well as some corporate associates.

“The strategic sale to Gordon Brothers and the move to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team,” said Bruce Thorn, president and CEO of Big Lots. “This sale and transfer agreement presents the strongest opportunity to preserve jobs, to maximize the value for the estate and to ensure the continuity of the Big Lots brand. We are grateful to our associates in the country for their grain and resistance throughout this process.”

LARGE LOTS TO CLOSE MORE THAN 50 LOCATIONS FOR SALE

The Big Lots logo on shopping carts in front of a Big Lots store on June 7, 2024, in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)

Big Lots did not respond to FOX Business’ request for additional information.

The deal between Big Lots and Gordon Brothers Retail Partners is subject to bankruptcy court approval.

Big Lots filed for Chapter 11 bankruptcy in early September to help facilitate the sale of “substantially all” of its assets to its “stalking horse bidder” Nexus Capital Management.

LARGE LOTS FILING FOR BANKRUPTCY, WILL CLOSE SOME WAREHOUSES FOR SALE TO INVESTMENT COMPANY

A customer shops at a Big Lots store on June 7, 2024, in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)

U discount salesman said at the time that his board had concluded that “entering into the Sale Agreement with Nexus, and the initiation of a court-supervised sale process, is the best path to maximize value and ensure continued operations”. Nexus must be the winning bidder in a court-supervised auction for the transaction to close.

Before filing Chapter 11, Big Lots told the Securities and Exchange Commission that it planned to close 35-40 stores, which quickly grew to hundreds. The retailer operates approximately 1,400 stores in the United States and employs more than 30,000 workers.

In Chapter 11 in September, Big Lots said there would be additional store closings, and in October, it announced another 50 stores would be closed.

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The discount retailer is known for selling home goods, furniture, seasonal decorations and other products.

In the second quarter, Big Lots generated $1.05 billion in net sales, down more than 8%, compared to the same three-month period last year. Its quarterly net loss was nearly $238.46 million.

Pilar Arias of FOX Business contributed to this report.