Big Lots, the discount retailer that filed for bankruptcy in September, announced on Friday that it has reached a sale agreement with an investment firm, which will allow many of its stores to remain open. The new deal involves transferring the company’s properties to other retailers and businesses.
The Ohio-based company had previously planned to close its remaining 963 stores after an acquisition by private-equity firm Nexus Capital Management fell through. However, the new agreement with Gordon Brothers Retail Partners will facilitate the transfer of Big Lots’ brand, stores, and distribution centers.
Variety Wholesalers, which owns over 400 stores, including Bargain Town, Bill’s Dollar Stores, and Maxway, will acquire between 200 and 400 Big Lots locations, along with up to two distribution centers, according to a statement from Big Lots.
This deal could prevent significant layoffs, as Variety Wholesalers said it may offer employment to Big Lots workers at the stores and distribution centers, as well as some corporate staff.
Bruce Thorn, president and CEO of Big Lots, expressed gratitude for the company’s employees, highlighting that the deal offers the best chance to preserve jobs, maximize value, and maintain the Big Lots brand. However, up to 555 corporate employees were at risk of losing their jobs, and another 505 employees in Pennsylvania could face layoffs starting January 6, based on notices filed by the company.
A Big Lots spokesperson told CNN that more details about the transaction are not yet available.
Big Lots is one of several well-known retailers to file for bankruptcy in 2024 as consumers cut back on discretionary spending. Last week, Party City also filed for bankruptcy and announced plans to close all of its more than 800 stores. High inflation and interest rates have contributed to weaker sales, while consumers increasingly seek value, which has hurt discount stores like Big Lots, while giants like Walmart and Amazon continue to thrive.