Big Lots to Keep Hundreds of Stores Open
Discount chain Big Lots has reached a deal that will save hundreds of its stores and distribution centers. The company filed for bankruptcy protection in September.
Big Lots will be sold to Gordon Brothers Retail Partners, a firm that helps struggling companies. After the sale, Gordon Brothers will transfer Big Lots’ stores, warehouses, and other assets to other retailers.
Variety Wholesalers Inc., which owns over 400 discount stores in the US Southeast and Mid-Atlantic regions, plans to buy between 200 and 400 Big Lots stores. They will keep the Big Lots brand and operate the stores themselves. Variety Wholesalers will also get up to two of Big Lots’ warehouses.
“We are very happy with this deal,” said Bruce Thorn, President and CEO of Big Lots. “It will help save jobs and make sure the Big Lots brand continues.”
Big Lots sells furniture, home decor, and other items. The company struggled when inflation and high interest rates made people less likely to buy things like home and seasonal products.
In September, Big Lots planned to sell its assets to a private equity firm called Nexus Capital Management. But that deal didn’t happen, and Big Lots started going-out-of-business sales at its 869 US locations. Now, with this new deal, many of those stores will stay open.
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