It looks like not all Big Lots stores are closing after all.
The liquidated retailer, which filed for bankruptcy in September, said it has agreed to a sale transaction with Gordon Brothers Retail Partner that allows for the transfer of Big Lots’ assets, including distribution centers, stores and intellectual property, to other companies and retailers, including Variety Wholesalers, Inc.
Under the terms of the deal, Variety Wholesalers, which operates more than 400 stores in the Southeast and Mid-Atlantic under the Roses, Maxway, Roses Express, Bill’s Dollar Stores, Super 10, Super 10 and Bargain Town brands, intends to acquire between 200 and 400 Big Lots stores as well as two distribution centers. The company plans to operate the acquired stores under the Big Lots brand.
In addition, Variety Wholesalers said it may employ Big Lots employees in the acquired stores and distribution centers, as well as some corporate partners.
The deal comes as Big Lots is conducting store-closing sales at its roughly 950 locations nationwide in the wake of the failure of its deal to be acquired by Nexus Capital Management.
“The strategic sale to Gordon Brothers and transfer to Variety Wholesalers is a significant and favorable 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 and transfer agreement presents the strongest opportunity to preserve jobs, maximize farm value and ensure the continuity of the Big Lots brand. We thank our associates across the country for their determination and resilience throughout this process.”
The transaction is subject to bankruptcy court approval and other customary closing conditions.
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” said Lisa Seigies, president and CEO of Variety Wholesalers. “We look forward to working with the Big Lots team members to realize the exciting opportunities ahead.”
Davis Polk & Wardwell LLP is acting as legal advisor, Guggenheim Securities, LLC is acting as financial advisor, AlixPartners LLP is acting as restructuring advisor and &G Real Estate Partners is acting as real estate advisor to the Company.
Riemer & Braunstein LLP acted as advisor to Gordon Brothers, and Gordon Brothers’ Real Estate Services team will handle real estate matters for the buyer, including Variety Wholesalers.
Cozen O’Connor serves as general counsel to Variety Wholesalers.
How did Big Lots get started in the United States of America?
Big Lots was born in 1967 as Consolidated International, Inc., founded by Sol Shenk:
- Shenk was a visionary in the discount store market.
- He loved doing liquidation deals, especially with auto parts and all types of vehicles.
In 1970, the company began operating as Consolidated International. During 1982, it launched the Odd Lots/Big Lots clearance chain, which included stores under the names: Odd Lots, Big Lots, Closeouts, Mac Frugal’s Bargains, Pic ‘N’ Save.
The main objective of Big Lots is to help people save money on all types of products.
In 2001, the company renamed its stores and corporate identity into a single national brand: Big Lots.
Big Lots is an American discount retail chain that specializes in clearance and overstock sales. It sells household items, such as furniture and home decor, as well as beauty products and apparel.
