Some Big Lots stores could remain open amid bankruptcy

National retailer Big Lots, headquartered in Columbus, Ohioannounced this week that it had found a buyer who would keep at least 200 stores open, while potentially keeping some employees on as well.

Earlier this month, Big Lots announced it would begin holding Going Out of Business (GOB) sales at all of its remaining stores after failing to reach a purchase agreement with Nexus Capital Management.

Now, the discount retailer has reached an agreement with Gordon Brother Retail Partners, LLC, which allows Big Lots’ assets, which include stores, distribution centers and intellectual property, to be transferred to other retailers and businesses.

One of those companies that will acquire the assets is Variety Wholesalers, Inc., which owns more than 400 retail stores in the southeastern and mid-Atlantic United States under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain names. City signs.

Lots of things to start making “going out of business” sales in the remaining locations

Variety Wholesalers is looking to acquire between 200 and 400 Big Lots stores, which will continue to operate under the Big Lots brand, as well as two distribution centers.

Variety Wholesalers “may” hire Big Lots associates in the acquired stores and distribution centers, as well as some corporate partners, Big Lots said in a press release.

“The strategic sale of Gordon Brothers and conversion to Variety Wholesalers is a positive and significant accomplishment for Big Lots that reflects the hard work and collective effort of our team,” said Bruce Thorne, President and CEO of Big Lots. “This sale and transfer agreement represents the strongest opportunity to preserve jobs, maximize property value and ensure the continuity of the Big Lots brand. We are grateful to our partners across the country for their tenacity and flexibility throughout this process.”

So many places that will close over 50 retail locations

Big Lots did not respond to FOX Business’ request for additional information.

The agreement between Big Lots and Gordon Brothers Retail Partners is subject to bankruptcy court approval.

Big Lots launched Chapter 11 bankruptcy proceedings in early September to help facilitate the sale of “all” of its assets to “stalking horse bidder” Nexus Capital Management.

Large files for bankruptcy, some stores will close amid sale to investment firm

the Discount retailer Nexus said at the time that its board concluded that “entering into a sales agreement with Nexus, and initiating a court-supervised sale, is the best path forward to maximize value and ensure continued operations.” Nexus must be the winning bidder in a court-supervised auction for the deal to close.

Before depositing Chapter 11, Big Lots told the Securities and Exchange Commission that it plans to close 35 to 40 stores, which quickly grew into the hundreds. The retailer operates about 1,400 stores across the United States and employs more than 30,000 workers.

In its Chapter 11 filing in September, Big Lots said there would be additional store closures, and in October, it announced that 50 more stores would be closed.

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The discount retailer is known for selling home goods, furniture, seasonal decor, and other products.

In the second quarter, Big Lots generated net sales of $1.05 billion, down more than 8%, compared to the same three-month period last year. Its net quarterly losses amounted to about $238.46 million.

FOX Business’ Pilar Arias contributed to this report.