Big Lots strikes deal to save some stores from closing, keep brand alive

In order to preserve the brand name and prevent some locations from closing, Big Lots has reached an agreement.

Late Friday, the bargain store giant revealed that it has reached an agreement with Gordon Brothers Retail Partners, LLC to sell Big Lots’ locations, distribution facilities, and intellectual property to other retailers, such as Variety Wholesalers, Inc.

Variety Wholesalers stated that it will purchase up to two distribution facilities and 200 to 400 Big Lots stores that will still be operating under the Big Lots name. Variety added that it might keep some corporate staff and Big Lots employees at its sites it has acquired.

Variety now owns over 400 retail stores in the Southeast and Mid-Atlantic regions under names like Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar, and Bargain Town; it is uncertain whether of these locations will be preserved. After eliminating more than 500 stores over the past year, Big Lots’ current brick and mortar presence was 908 stores last week; the purchase represents less than half of that total.

There are currently 49 Big Lots locations left in the state of New York, including Auburn, Buffalo, Clifton Park, Cortland, Depew, Dunkirk, Elmira, Hamilton, Kingston, Liverpool, Lockport, Mattydale, Oswego, Potsdam, Pulaski, Rochester, Rome, Saugerties, Tonawanda, Utica, Vestal, Watertown, and West Seneca. All stores will close on Saturday morning, according to the retailer’s website, which also offers up to 25% off.

Binghamton, Buffalo, Canandaigua, Geneva, Irondequoit, Ithaca, New Hartford, Poughkeepsie, and Troy were among the Empire State’s locations that Big Lots closed earlier this year.

Amid dwindling sales, Big Lots declared Chapter 11 bankruptcy in September, citing concerns about its continuing viability as a result of a difficult consumer climate and a persistent decline in core customer spending, especially on expensive discretionary goods. After a sale arrangement with a Nexus Capital Management affiliate fell through, the company announced last week that it will close all of its remaining locations and conduct an agonizing-out-of-business sale.

A positive and noteworthy accomplishment for Big Lots, the strategic sale to Gordon Brothers and the transfer to Variety Wholesalers are a testament to the unwavering dedication and teamwork of our employees. Bruce Thorn, president and CEO of Big Lots, stated on Friday that this sale agreement and transfer offer the best chance to protect jobs, increase estate value, and guarantee the Big Lots brand’s survival. We appreciate the perseverance and fortitude of our colleagues across the country during this process.

We are thrilled to work with Gordon Brothers to offer a future for the Big Lots brand and hundreds of its locations, said Lisa Seigies, president and chief executive officer of Variety Wholesalers. We are eager to collaborate with Big Lots team members in order to take advantage of the great opportunities that lie ahead.

In addition to other standard closing requirements, the agreement is contingent to approval by the U.S. Bankruptcy Court.

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