Big Lots secures agreement to maintain operation of numerous outlets, safeguarding numerous work positions.
The Columbus, Ohio-based business recently declared its intention to shut down the remaining 963 of its outlets following the collapse of its acquisition deal with Nexus Capital Management. Big Lots has instead partnered up with Gordon Brothers Retail Partners, who will oversee the transfer of the company's brand, stores, and distribution centers.
Variety Wholesalers, whose portfolio includes over 400 retail stores such as Bargain Town, Bill's Dollar Stores, and Maxway, will acquire between 200 and 400 Big Lots stores as well as up to two distribution centers, according to Big Lots' official statement.
The new deal may help save jobs for thousands of Big Lots employees. Variety Wholesalers has indicated that it might take on staff from both the stores and distribution centers, as well as some corporate executives.
Bruce Thorn, Big Lots' president and CEO, commented, "This agreement and transfer provide the optimal chance to preserve jobs, maximize value for the company, and ensure the Big Lots brand's continuity. We're grateful to our associates nationwide for their tenacity and resilience throughout this process."
However, it's unclear how many Big Lots employees will keep their jobs. Initially, up to 555 corporate employees were at risk of losing their jobs, as mentioned in a layoff notice. An additional 505 employees in Pennsylvania faced the possibility of being laid off starting January 6, according to another notice released by the company.
A representative from Big Lots informed CNN that further details regarding the deal could not be disclosed on Saturday.
Big Lots is just one of the many renowned retailers to file for bankruptcy in 2024, as consumers trim down their discretionary spending. Only last week, Party City made the announcement that it had filed for bankruptcy protection and would close down all its more than 800 stores.
Retail chains have pointed to high inflation and interest rates as reasons for poor sales performance. meanwhile, consumers have shifted their preference towards value rather than lower costs – a factor that has negatively impacted budget stores whereas Walmart and Amazon have seen growth.
CNN's Jordan Valinsky contributed to this report.
The shutdown of the remaining Big Lots outlets could significantly impact the local business community. Many suppliers and service providers who rely on Big Lots as a client may need to adjust their strategies.
Despite the challenging business environment, Variety Wholesalers sees potential in acquiring Big Lots stores and distribution centers, indicating a belief in the continuing demand for budget retail.
