Big Lots Announces Sale Agreement with Gordon Brothers Retail Partners

(Reuters) – Big Lots (NYSE:BIG) announced on Friday that it has reached an agreement with Gordon Brothers Retail Partners to sell its stores, distribution centers, and intellectual property to various retailers, including Variety Wholesalers. This move aims to maintain its brand and secure some outlets and jobs.

The privately-owned Variety Wholesalers plans to acquire between 200 to 400 Big Lots stores, as well as two distribution centers, while retaining associates who will continue to operate under the Big Lots brand.

The Columbus, Ohio-based company has initiated bankruptcy proceedings under Chapter 11 and plans to close about 20% of its approximately 1,400 locations across the United States.

In September, Big Lots secured $707.5 million to support operations and facilitate the sale of its business to private equity firm Nexus Capital.

Big Lots' CEO Bruce Thorn stated, "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."

The retailer, employing over 30,000 workers, has faced continual sales declines in recent quarters, putting pressure on its financial stability.