The discount retailer Big Lots, which filed for bankruptcy protection in September 2023, has successfully reached an agreement to keep hundreds of its U.S. stores and distribution centers operational. Big Lots announced that it will be sold to Gordon Brothers Retail Partners, a firm that specializes in managing distressed organizations. Following this transition, Gordon Brothers plans to transfer Big Lots' stores and distribution assets to various retailers, safeguarding a significant part of the company’s infrastructure.

As part of the deal, Variety Wholesalers Inc., a company that operates over 400 discount stores across the Southeast and Mid-Atlantic regions, is set to acquire between 200 and 400 Big Lots locations along with up to two distribution centers. In a statement, Bruce Thorn, President and CEO of Big Lots, expressed gratitude to employees, stating, “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.” This news comes amidst a turbulent retail environment influenced by rising inflation and higher interest rates, which adversely affected consumer spending on essential items.

Prior to this agreement, Big Lots had aimed to sell to Nexus Capital Management, a plan that fell through in December. Subsequently, the company started conducting going-out-of-business sales across its 869 locations, indicating serious financial distress. However, this new development offers a lifeline for the retailer and its approximately 27,000 employees, many of whom faced job losses if the liquidation proceeded. The situation reflects broader challenges in the retail sector, where many discount chains are grappling with similar issues.

This rescue plan will not only retain the Big Lots brand but also position it to continue serving budget-conscious consumers nationwide. Despite earlier predictions of widespread store closures, this deal signifies a potential rebound for Big Lots and a chance for recovery in the competitive discount retail landscape. Further details surrounding which specific locations will remain operational are yet to be disclosed.

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