Discount retailer Big Lots filed for bankruptcy protection in September and has agreed to continue operating hundreds of its stores and distribution centers.
On Saturday, Big Lots announced its upcoming sale to Gordon Brothers Retail Partners, a firm specializing in acquiring distressed businesses.
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.”
Gordon Brothers, which currently operates over 400 discount stores in the southeastern and mid-Atlantic regions of the United States, plans to acquire between 200 and 400 Big Lots locations. These stores will continue to operate under the Big Lots name.
Furthermore, Gordon Brothers intends to acquire up to two logistics centers. The company plans to eventually transfer Big Lots’ stores, distribution centers, and other assets to other retailers.
Big Lots, known for its furniture, home decor, and household items, attributed its bankruptcy filing to inflation and high interest rates, which have led to a decline in consumer spending on home and seasonal goods.
Initially, Big Lots had planned to sell its assets to private equity firm Nexus Capital Management while continuing its operations. However, on December 20, the company announced that the deal with Nexus had fallen through.
Following this, Big Lots partnered with Gordon Brothers to conduct liquidation sales at 869 stores across the United States.
Most Commented