US-based discount retailer Big Lots has concluded its sale agreement with Gordon Brothers Retail Partners, securing the brand's future and several jobs.
The two parties entered into agreement for the deal late last in 2024.
This strategic move allows Variety Wholesalers to take over several store outlets, ranging from 200 to 400 stores, and potentially up to two distribution centres.
Variety Wholesalers, which owns more than 400 retail stores in the US, will continue to operate the acquired stores under the Big Lots banner.
The acquisition also opens the possibility for Variety Wholesalers to retain Big Lots employees at both the store and distribution centre levels, as well as select corporate staff essential for supporting the ongoing operations of the stores.
Big Lots president and CEO Bruce Thorn said: "The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favourable 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, maximise value for the estate and ensure continuity of the Big Lots brand. We are grateful to our associates nationwide for their grit and resilience throughout this process."
At the time of its bankruptcy filing, the company was one of America's foremost home goods retailers, boasting 1,300 locations nationwide, annual revenues surpassing $4.7bn, and a workforce exceeding 27,000 individuals.
The finalised agreement with Gordon Brothers is projected to save between 5,000 and 10,000 jobs while also keeping the Big Lots brand operational, as reported by Reuters.
Big Lots had proactively filed for Chapter 11 protection in Delaware's US Bankruptcy Court in September 2024.
This action was intended to streamline the transfer of its assets and maintain business continuity under Nexus Capital Management's wing.
Despite securing interim court approval for immediate access to a substantial portion of its $707.5m debtor-in-possession financing, the company's arrangement with Nexus Capital ultimately unravelled last month.
This led to liquidation sales across approximately 900 stores as part of preparations for a potential full-scale shutdown.
Gordon Brothers North America retail partners head of Rick Edwards said: "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."
