*Discount retailer Big Lots has secured a deal with Gordon Brothers Retail Partners to rescue hundreds of its stores and safeguard thousands of jobs following its Chapter 11 bankruptcy filing in September.
According to Newsweek, the agreement allows Variety Wholesalers to acquire between 200 and 400 stores and up to two distribution centers, ensuring the Big Lots brand continues its 37-year presence nationwide. This development averts the planned closure of all 963 stores and prevents layoffs for thousands of workers, including 555 corporate employees and 505 Pennsylvania staff previously set to lose their jobs in early 2025.
“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,” said Bruce Thorn, Big Lots’ president and CEO in a statement to Newsweek. “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 deal represents a significant lifeline for the Ohio-based company, preserving retail operations across multiple states.
“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,” said Rick Edwards, Gordon Brothers Retail Partners’ head of North America retail.
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The retailer’s financial struggles included a $205 million net loss in the first quarter of 2024 and substantial long-term debt, reflecting broader economic challenges like high inflation and rising interest rates. Big Lots’ bankruptcy is part of a larger trend in the retail sector, with other companies, such as Party City, also filing for bankruptcy this year.
Before the new agreement, Big Lots had planned to close nearly 500 stores, with California being hit the hardest, accounting for 75 closures out of 109 locations in the state. Big Lots employs approximately 27,000 people, but it remains unclear how many of these jobs will transition to Variety Wholesalers under the new arrangement.
Newsweek reports that other closing conditions must also be met for the rescue deal to be approved by the bankruptcy court.
Lisa Seigies, Variety Wholesalers’ president and CEO said: “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.”
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