In a surprising turn of events, discount retailer Big Lots has announced a new deal that will keep hundreds of its stores open after a previous acquisition attempt fell through.
The company, which filed for bankruptcy in September, had recently announced plans to close all of its remaining 963 stores after a deal with private equity firm Nexus Capital Management collapsed.
However, Big Lots has now reached an agreement with Gordon Brothers Retail Partners, which will facilitate the transfer of its brand, stores, and distribution centers to new owners.
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Variety Wholesalers, a company that operates over 400 retail stores under various banners, will acquire between 200 and 400 Big Lots stores and up to two distribution centers. This move could save thousands of jobs, as Variety Wholesalers has indicated they may employ Big Lots staff at the acquired stores and facilities.
“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, Big Lots President and CEO.
The news comes as a relief to many Big Lots employees who were facing layoffs after the previous deal collapsed. While the exact number of jobs that will be saved is unclear, it could be significant.
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Big Lots’ bankruptcy filing was part of a larger trend in the retail industry, with several well-known chains struggling amid high inflation, rising interest rates, and changing consumer spending habits. Party City, another discount retailer, also recently filed for bankruptcy and announced the closure of all its stores.
This new deal offers a glimmer of hope for Big Lots, allowing the brand to continue operating and providing value to customers. It also demonstrates the resilience of the retail industry and the potential for companies to find new paths forward even in challenging times.
PREVIOUS REPORT: Discount retailer Big Lots has announced that it will be closing all of its remaining stores after a deal with its buyer fell through. The company is currently holding “going out of business” sales at its 908 locations nationwide.
Big Lots had been struggling financially for some time, closing hundreds of stores throughout 2024 and filing for Chapter 11 bankruptcy earlier this year. The company had reached an agreement to transfer ownership of its stores and operations to private equity firm Nexus Capital Management, but that deal recently collapsed.
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“We are disappointed that the deal with Nexus Capital Management did not close,” said Bruce Thorn, Big Lots President and CEO. “However, we are committed to maximizing value for our stakeholders and believe that conducting going out of business sales is the best course of action at this time.”
The company is offering steep discounts of 25% off all merchandise in an effort to liquidate its inventory. All brick-and-mortar stores are expected to close permanently.
This news comes as another blow to the retail industry, which has faced numerous challenges in recent years, including the rise of e-commerce, changing consumer habits, and economic uncertainty.
Big Lots’ closure follows a similar announcement by Party City, which also revealed it is going out of business and closing all stores. Both retailers are holding liquidation sales with significant discounts in an attempt to sell off remaining inventory.
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The closure of Big Lots will impact thousands of employees and leave a void in the discount retail market. It remains to be seen whether another buyer will emerge to acquire the company’s assets or if the brand will disappear entirely.
For now, shoppers can take advantage of the deep discounts offered during the going out of business sales.
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