Bankruptcy Deal To Keep Big Lot US Stores Open

Big Lots filed for bankruptcy in September 2024 after facing falling sales, declining foot traffic, inflationary pressures, and unsustainable debt. It had previously planned to close all of its more than 800 locations before securing its last-minute deal with Variety Wholesalers at the beginning of this year. While Big Lots did initially plan to close all stores, a new deal allowed a significant number of locations to remain open under new ownership. The restructuring firm that took control of Big Lots in the wake of its bankruptcy last year appears to be making progress in its effort to transfer some of the discount chain’s ill-fated locations to other retailers. Big Lots said Friday it will be sold to Gordon Brothers Retail Partners, a firm that specializes in distressed companies. More specifically, Gordon Brothers will then transfer Big Lots’ stores, distribution centers and other assets to other retailers. 

Big Lots Financial Woes

• Bankruptcy Filing: Big Lots filed for bankruptcy in September 2024 due to financial difficulties.  
• Initial Plan: The initial plan was to sell the company to a private equity firm, Nexus Capital Management. This deal fell through.  
• New Deal: Big Lots then struck a deal with Gordon Brothers Retail Partners, a firm specializing in distressed companies.  
• Store Closures and Sales: Initially, Big Lots announced it would close all its stores and hold "going out of business" sales.
• Continued Operations: However, a new agreement was reached with Variety Wholesalers Inc. to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand.