Big Lots Secures Deal to Keep Stores Open and Save Jobs

Big Lots, the discount retail chain that filed for bankruptcy in September, has announced a critical agreement to preserve hundreds of stores and safeguard jobs. The deal involves a partnership with Gordon Brothers Retail Partners, which will oversee the transfer of the company’s brand, stores, and distribution centres to other retailers.

The Ohio-based retailer had previously planned to shutter its remaining 963 locations following a failed acquisition by private equity firm Nexus Capital Management. However, the new arrangement includes a significant acquisition by Variety Wholesalers, the parent company of Bargain Town, Bill’s Dollar Stores, and Maxway. According to Big Lots, Variety Wholesalers will take over 200 to 400 stores and up to two distribution centres.

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

The deal could save thousands of jobs across the chain. Variety Wholesalers has indicated plans to employ many of Big Lots’ store and distribution center staff, along with some corporate employees. However, uncertainty remains as notices filed by the company indicated potential layoffs for up to 555 corporate employees and 505 employees in Pennsylvania as early as January 6.

Big Lots’ spokesperson declined to provide further details about the deal when contacted.

The company’s bankruptcy comes amid broader challenges in the retail sector. High inflation and rising interest rates have led to reduced consumer spending on non-essential items. While discount stores have struggled, larger retailers like Walmart and Amazon have seen continued success by offering value-focused options to shoppers.

Big Lots joins a growing list of retailers filing for bankruptcy in 2024, including Party City, which recently announced plans to close all 800 of its stores. The new deal offers a lifeline for Big Lots, preserving a portion of its footprint and potentially revitalizing the brand in the hands of its new partners.