Struggling discount retailer Big Lots has secured 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 made 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 purchase 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 operating under the Big Lots name.
The deal may be a potential lifeline for the bankrupt retailer as it appeared headed for total liquidation.
Still, the agreement leaves thousands of workers facing uncertainty about their future employment. The future of at least 27,700 employees remains unclear.
In its announcement, Big Lots said Variety ‘may’ employ current associates at the saved locations, but did not confirm.
Struggling discount retailer Big Lots has secured 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 employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forward footprint,’ the company wrote in a press release.
Bruce Thorn, Big Lots’ President and Chief Executive Officer, 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 present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand,’ he added.
The Ohio chain made an agreement with Gordon Brothers and Variety Wholesalers that should help keep hundreds of stores open and save thousands of jobs
‘We are grateful to our associates nationwide for their grit and resilience throughout this process.’
The agreement is still subject to approval by the Bankruptcy Court.
This comes just a week after the company had announced a full list of all its stores which are set to close down.
The discount retail chain filed for Chapter 11 bankruptcy in September, and has already shut hundreds of stores nationwide.
In a press release released earlier this month, the company said it would begin the 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 its stores which are set to close down.
The discount retail chain filed for Chapter 11 bankruptcy in September, and has already shut hundreds of stores nationwide.
In its announcement, Big Lots said Variety ‘may’ employ current associates at the saved locations, but did not confirm
In a press release yesterday, the company said it would begin the sales at its 963 remaining locations, after a sale to a private equity firm fell through
Rick Edwards, Gordon Brothers Retail Partners’ Head of North America Retail, said the new deal would allow Big Lots to ‘continue to serve customers with extreme bargains and an outstanding shopping experience.’
Variety Wholesalers’ President and CEO Lisa Seigies 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.’
