Despite Big Lots dissolving amid Chapter 11 bankruptcy proceedings, the company announced late Friday that it has agreed to a sale with Gordon Brothers Retail Partners, LLC that would involve keeping hundreds of stores open, if the deal is approved by a judge.
The company was in the process of launching "going out of business" sales at all of its locations after a possible deal to sell the company to Nexus Capital Management fell through.
Big Lots has already closed hundreds of locations this year. The company still has more than 900 locations. No timetable has been set on when the other locations will close.
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As part of the new agreement, Gordon Brothers Retail Partners will transfer Big Lots assets, including stores, distribution centers, and intellectual property, to other retailers and companies, Big Lots said. Variety Wholesalers, which also operates the retailer Roses, intends to acquire between 200 and 400 Big Lots stores. Variety Wholesalers also plans to operate the stores under the Big Lots brand moving forward.
Variety Wholesalers will also keep two Big Lots distribution centers open under the agreement.
"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," Bruce Thorn, Big Lots' President, said. "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."
A federal bankruptcy court still has to approve the transfer of stores.
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