Big Lots, the well-known discount retailer based in Columbus, Ohio, has announced a potential lifeline that could keep up to 200 stores open.
After filing for Chapter 11 bankruptcy in September, the company revealed a deal with Gordon Brothers Retail Partners, LLC, an asset management firm, to transfer its stores, distribution centers, and intellectual property to new ownership.
Big Lots Bankruptcy Deal Could Preserve Jobs and Stabilize Brand
The agreement involves Variety Wholesalers, Inc., a North Carolina-based company operating over 400 stores under brands like Roses, Maxway, and Super 10, USA Today said.
Variety Wholesalers plans to acquire 200–400 Big Lots locations and two distribution centers.
These stores will continue to operate under the Big Lots brand, and the new owner has indicated it may retain some Big Lots employees in store and corporate roles.
This development comes after Big Lots had announced widespread store closures due to its financial struggles.
Earlier this year, the company disclosed plans to close 35–40 stores, a number that grew to hundreds as the bankruptcy process progressed. Currently, Big Lots operates approximately 1,400 stores nationwide, employing more than 30,000 workers.
The deal with Variety Wholesalers provides a chance to stabilize the brand and preserve jobs. Big Lots CEO Bruce Thorn emphasized that the agreement represents the best opportunity to maximize value for creditors and protect the company's legacy.
While many details remain subject to approval by the bankruptcy court, the transaction offers a glimmer of hope for employees and customers alike.
Big Lots Reports $238.5M Loss as Bankruptcy Deal Aims to Stabilize Operations
According to FoxBusiness, Big Lots faced mounting challenges in recent years, including declining sales and significant financial losses. In its second-quarter report, the company revealed an 8% year-over-year drop in net sales, totaling $1.05 billion, and a net loss of nearly $238.5 million.
The decision to file for bankruptcy followed a failed attempt to sell its assets to Nexus Capital Management, another potential buyer.
The retailer is not alone in facing these challenges. Other companies like The Container Store and Party City have also struggled in a difficult retail environment, filing for bankruptcy or closing stores.
Although Big Lots has yet to disclose which specific locations will remain open under the new ownership, the deal marks a significant step toward stabilizing its operations. Customers and employees are hopeful that the agreement will ensure the survival of the Big Lots brand in communities across the US.
