Customers of Big Lots got news in December that all of its stores would begin liquidating assets after a potential purchase failed to materialize.
Sales commenced immediately following the announcement with the caveat that all sales were final.
However, as the saying goes, when one door closes, another door opens.
Another retail giant has stepped up to purchase the discount chain’s stores, distribution centers and other assets, the company announced on Friday.
It is unknown if the sale will keep the Waynesboro and Harrisonburg stores open. There are 33 locations in Virginia, according to the retailer’s website.
Nationwide, the move should preserve hundreds of branded stores and save thousands of jobs.
Big Lots has agreed to sell its assets to Gordon Brothers Retail Partners LLC which plans to transfer stores, distribution centers and intellectual property to other retailers.
Variety Wholesalers, which owns more than 400 retail stores in the Southeast and Mid-Atlantic including Roses, Super Dollar and other discount chains, intends to acquire 200 to 400 stores and operate them under the Big Lots name. It is also interested in 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,” said Bruce Thorn, Big Lots president and CEO. “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,” Thorn said.
A deal with Nexus Capital Management to purchase the stores fell through earlier this month.
The company had entered into Chapter 11 bankruptcy proceedings in September blaming the pandemic, high inflation and interest rates for its demise saying core customers had “curbed their discretionary spending.”
The purchase agreement with Gordon Brothers Retail Partners is subject to approval by the bankruptcy court and other customary closing conditions.
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Crystal Graham
