Big Lots has struck a deal to keep hundreds of stores from shuttering.
The bankrupt discount retailer announced Friday (Dec. 27) that it had agreed to sell itself to Gordon Brothers Retail Partners, a capital markets company that will transfer Big Lots’ stores, distribution centers and other assets to other retailers.
According to a regulatory filing, Variety Wholesalers, owner of 400-plus discount stores in the mid-Atlantic and Southeastern states, will acquire 200-400 Big Lots stores, operating them under the Big Lots brand, along with two distribution centers.
“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,” Bruce Thorn, the company’s president and CEO, said in a widely shared statement. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
The announcement comes at the end of a tumultuous year for Big Lots. News broke in August that the company was considering bankruptcy after years of declining sales. Weeks later, Big Lots declared bankruptcy and announced its pending sale to Nexus Capital Management.
But earlier this month, the company announced that the Nexus deal had fallen through and that it was now planning going out of business sales.
Big Lots was a “once stalwart” company in the retail discount world but has faced obstacles in recent years, Sudip Mazumder, senior vice president, retail industry lead, North America at digital consultancy Publicis Sapient, told PYMNTS in an interview in September.
“The company’s traditional brick-and-mortar model, heavily reliant on closeout merchandise, became less appealing to a market increasingly seeking convenience, variety and unique offerings,” Mazumder said. “The rise of eCommerce and shifting consumer preferences caught Big Lots off guard, leaving it struggling to keep pace.”
As part of a plan to update its digital offerings, Big Lots introduced a new app in November, saying it offers a range of features aimed at improving customer engagement and streamlining the shopping experience.
“The Big Lots app integrates in-store and online shopping by providing an all-in-one platform where users can manage various aspects of their shopping experience,” Bruce Millard, senior vice president of marketing and eCommerce at Big Lots, told PYMNTS in an interview earlier this month.
In related news, PYMNTS recently examined the obstacles facing retailers after a busy holiday season, with stores’ challenges to keep consumer momentum going, especially at brick-and-mortar locations.
The PYMNTS Intelligence/Visa Acceptance Solutions report “2024 Global Digital Shopping Index: U.S. Edition” found that around a third of United States consumers are Click-and-Mortar shoppers, choosing experiences that combine convenient digital features with the in-store shopping journey.
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