Ohio-based discount chain Big Lots announced a new deal with private equity firm Gordon Brothers Retail Partners on Friday that would save hundreds of stores and thousands of jobs nationwide after filing for Chapter 11 bankruptcy in September.
The latest agreement enables Variety Wholesalers to acquire between 200 and 400 Big Lots locations and up to two distribution centers, just weeks after the discount retailer had prepared to shutter all 963 remaining stores.
The stores will continue operating under the Big Lots brand, maintaining the company's 37-year retail presence across America.
In an email to Newsweek on Saturday afternoon, a spokesperson said the company is not providing any additional information beyond its press release.
Why It Matters
The rescue deal marks a dramatic turnaround for Big Lots, preventing layoffs, including up to 555 corporate employees and 505 Pennsylvania workers who were set to lose their jobs in January 2025.
The agreement would preserve thousands of retail jobs across multiple states.
The discount retailer reported a $205 million net loss in the first quarter of 2024, with long-term debt reaching $573.8 million, reflecting broader challenges in the retail sector amid high inflation and rising interest rates.
The move follows months of financial turbulence in the discount retail sector. Big Lots joins a growing list of major retailers filing for bankruptcy this year, including Party City's closure of all 700+ stores.
What To Know
The announcement emerges after the collapse of Big Lots' previous lifeline—a planned sale to Nexus Capital Management that fell through in early December.
Following that setback, Big Lots had partnered with Gordon Brothers to conduct going-out-of-business sales at all locations.
Shoppers Should Know
Under the new arrangement, Variety Wholesalers, which operates more than 400 popular retail stores across the Southeast and Mid-Atlantic under brands like Roses, Maxway, and Bargain Town, will maintain the Big Lots brand at acquired locations.
The deal includes two distribution centers and potential employment opportunities for store employees, distribution center workers, and corporate staff.
Before this agreement, Big Lots had already planned nearly 500 store closures, with California facing the heaviest impact—75 out of 109 stores set to close.
Store Locations
Variety Wholesalers has yet to indicate which stores will remain open.
Big Lots currently has some 27,000 employees, but the number that will transfer to Variety has yet to be determined.
What People Are Saying
Bruce Thorn, Big Lots' president and CEO: "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."
Rick Edwards, Gordon Brothers Retail Partners' head of North America retail: "We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience."
Lisa Seigies, Variety Wholesalers' president and CEO: "We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead."
What Happens Next
The rescue deal requires bankruptcy court approval and must meet other closing conditions.
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