Big Lots bankruptcy proposal could save at least half the stores
Just a week after announcing that all Big Lots stores would close, the company now says a last-minute sale may save 200 to 400 locations.
In a press release, Big Lots, which filed for bankruptcy protection in September, said it would be sold to Gordon Brothers Retail Partners, a firm specializing in distressed companies. Gordon Brothers would then transfer Big Lots’ stores' distribution centers and other assets to other retailers.
Variety Wholesalers, which owns more than 400 retail stores, intends to acquire between 200 and 400 Big Lots stores and would operate under the Big Lots brand moving forward.
The proposal would have to be approved by a federal bankruptcy court judge in Wilmington, Del.
As of January 2023, the retailer operated 1,450 stores nationwide. Big Lots has four stores in Maine: in Auburn, Augusta, Brunswick and Farmington.
"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," said Rick Edwards, Gordon Brothers retail partners' head of North America retail.
In addition, Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers and certain corporate associates are needed to support the go-forward footprint.
Variety Wholesalers, which is based in Hendersonville, N.C., owns over 400 stores trading under the names Roses, Roses Express, Maxway, Bill's Dollar Stores and Bargain Town.
"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,” said Bruce Thorn, president and CEO of Big Lots.
“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,” he continued. “We are grateful to our associates nationwide for their grit and resilience throughout this process."
Mainebiz web partners
Most Recent
Most Recent
0 Comments