Big Lots, the discount retailer headquartered in Columbus, Ohio, has secured a deal that will ensure the future of hundreds of its stores and distribution centers despite its bankruptcy filing earlier this year. The chain, which sells furniture, home decor, and other items, struggled under the weight of inflation and rising interest rates that caused a drop in consumer spending.
Gordon Brothers Takes the Lead in Revitalizing Big Lots
In an effort to preserve its operations, BL has partnered with Gordon Brothers Retail Partners, a firm specializing in distressed businesses. The deal will see Gordon Brothers manage the transfer of Big Lots‘ assets, including stores and distribution centers, to other retailers.
Variety Wholesalers Expands Through Big Lots Acquisition
As part of the deal, Variety Wholesalers Inc., which operates over 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, plans to acquire between 200 and 400 BL locations. These stores will continue to operate under the BL brand, providing a sense of continuity for customers and employees. In addition, Variety Wholesalers may take over up to two distribution centers.
The companie’s President and CEO Bruce Thorn emphasized that the agreement offers the best opportunity to preserve jobs and maximize the company’s value. He also expressed appreciation for the dedication of Big Lots employees throughout the process.
The move marks a critical moment for Big Lots, which had initially hoped to sell its assets to private equity firm Nexus Capital Management. However, after the deal with Nexus fell through, the company pivoted to this new partnership, ensuring that a large portion of its U.S. locations will remain operational for the foreseeable future.
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