Big Lots reaches deal with Gordon Brothers to keep up to 400 stores open

COLUMBUS, Ohio — Big Lots has reached a deal that will keep hundreds of its stores and distribution centers open,

The discount chain said on Friday that it will be sold to Gordon Brothers Retail Partners, a firm that specializes in distressed companies. Gordon Brothers will then transfer Big Lots’ stores, distribution centers and intellectual properties to other retailers, Big Lots said in a news release.

The sale comes a week after Big Lots’ plan to sell to another management firm did not go through.

Big Lots, based in Columbus, Ohio, filed for Chapter 11 bankruptcy in September, USA Today reported. The proposed sale is subject to approval by the bankruptcy court, according to the newspaper.

Variety Wholesalers Inc., which is headquartered in Hendersonville, North Carolina, owns more than 400 retail stores across the Southeast and Mid-Atlantic states, the news release stated. The company plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand, The Associated Press reported. Variety Wholesalers will also obtain up to two distribution centers.

“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,” Big Lots CEO Bruce Thorn said in a statement. “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. We are grateful to our associates nationwide for their grit and resilience throughout this process.”

Big Lots currently employs more than 27,000 workers, Bloomberg reported. The company had more than 1,300 stores nationwide as of March 2024, according to USA Today.

Big Lots officials said after filing for bankruptcy that inflation and high interest rates caused consumers to hold off on buying home and seasonal products, the AP reported. Those two categories make up a significant portion of its revenue.

“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,” Rick Edwards, Gordon Brothers Retail Partners’ head of North America Retail said in a statement.

Lisa Seigies, Variety Wholesalers’ president and CEO, said the company “was excited” to partner with Gordon Brothers “to provide a path forward for the Big Lots brand.”

“We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead,” Seigies said in a statement.

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