Big Lots Strikes Deal to Keep 200 to 400 Stores Open
It looks as if not all Big Lots stores will be going dark after all.
The close-out retailer, which filed for bankruptcy in September, said that it has agreed to a sale transaction with Gordon Brothers Retail Partner that enables the transfer of Big Lots assets — including stores, distribution centers and intellectual property — to other retailers and companies, 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, Roses Express, Maxway, Bill's Dollar Stores, Super 10, Super Dollar and Bargain Town banners, intends to acquire between 200 and 400 Big Lots stores and up to 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 at the acquired stores and distribution centers, as well as some corporate associates.
The agreement comes as Big Lots is holding store closing sales at its approximate 950 locations nationwide in the wake of the collapse of its deal to be acquired by Nexus Capital Management.
“The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team,” said Bruce Thorn, president and CEO, Big Lots. “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. We are grateful to our associates nationwide for their grit and resilience throughout this process.”
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The transaction is subject to approval by the bankruptcy court 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, Variety Wholesalers. “We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead."
Advisors: Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Real Estate Partners is serving as real estate advisor to the company.
Riemer & Braunstein LLP acted as counsel to Gordon Brothers, and Gordon Brothers' Real Estate Services team will be handling real estate matters for the buyer, including Variety Wholesalers.
Cozen O'Connor is serving as legal counsel to Variety Wholesalers.
This article was originally reported by sister publication Chain Store Age.
