Big Lots Strikes Deal to Save Hundreds of Stores from Closure

Big Lots Inc., the discount retailer that filed for bankruptcy in September 2024, has reached a last-minute agreement that could save hundreds of its stores from closing. This development comes just a week after the company had announced plans to liquidate all of its locations.

• Big Lots has agreed to a sale transaction with Gordon Brothers Retail Partners LLC.
• The deal allows for the transfer of Big Lots' assets, including stores, distribution centers, and intellectual property, to other retailers and companies.
• Variety Wholesalers Inc., which owns over 400 discount stores in the Southeast and Mid-Atlantic regions, plans to acquire between 200 and 400 Big Lots stores.
• The acquired stores will continue to operate under the Big Lots brand.

• Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support ongoing operations.
• Up to two distribution centers may also be acquired as part of the deal.
• This arrangement could potentially save thousands of jobs that were at risk.

• Big Lots had 1,300 stores when it filed for Chapter 11 bankruptcy protection in September 20241.
• The company had previously announced the closure of 315 stores around the time of its bankruptcy filing.
• A earlier deal with private equity firm Nexus Capital Management fell through, leading to the announcement of liquidation plans for all remaining stores.

• The agreement is subject to approval by the bankruptcy court and other customary closing conditions.
• Big Lots is scheduled to appear in Delaware bankruptcy court on Monday for further proceedings.

Bruce Thorn, President and CEO of Big Lots, stated that this sale agreement "presents the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand" .While this deal offers a lifeline for Big Lots, the exact number of stores that will remain open and the long-term future of the brand remain uncertain as the company navigates through its bankruptcy proceedings