Retail  December 30, 2024

Deal may keep some Big Lots stores open

Big Lots
Big Lots is closing eight locations in Colorado, including the location at 2628 11th Ave. in Greeley. Christopher Wood/BizWest.
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A deal reached last week with a Boston-based company could result in some Big Lots discount retail stores remaining open under that brand.

Columbus, Ohio-based Big Lots Inc. had launched Chapter 11 bankruptcy proceedings in early September to help facilitate the sale of “substantially all” of its assets to Nexus Capital Management, its stalking horse bidder, but announced Dec. 19 that it didn’t expect to complete its previously announced asset purchase agreement with Nexus and that its stores — including the region’s last remaining location at 893 S. Kuner Road in Brighton — would launch going out of business sales.

However, on Friday it agreed to a sale transaction with Boston-based Gordon Brothers Retail Partners LLC that, if approved by the U.S. Bankruptcy Court, would enable the transfer of Big Lots’ assets — including stores, distribution centers and intellectual property — to other retailers and companies, including Hendersonville, North Carolina-based Variety Wholesalers, Inc. That company owns more than 400 retail stores in Southeast and Mid-Atlantic states under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain Town banners.

Under the agreement, Variety Wholesalers would acquire between 200 and 400 Big Lots stores, which it would operate under the Big Lots brand, and up to two Big Lots distribution centers. In  addition, according to a Big Lots news release, Variety Wholesalers “may” employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the plan going forward.

It was not clear as of Monday whether the Brighton store would be among those that could remain open. Big Lots operates around 1,400 stores across the United States and employs more than 30,000 workers.

“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,” Bruce Thorn, Big Lots president and CEO, said in a prepared statement. “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.”

Officials with Gordon Brothers and Variety echoed optimism about the transaction in prepared statements.

“We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience,” said Rick Edwards, who heads North American retail for Gordon Brothers.

Lisa Seigies, Variety Wholesalers’ president and CEO, added, “We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”

In a notice filed with the U.S. Bankruptcy Court for the District of Delaware on Oct. 16, Big Lots had identified the Brighton store as part of its fourth group of intended closings, but the location remains open.

Big Lots in August said it would close more than half of its locations in Colorado, including stores at 2628 11th Ave. in Greeley and 2151 Main St. in Longmont. That announcement came 19 months after it announced it was closing four Colorado stores including the location at 126 W. Troutman Parkway in Fort Collins.

A case filed under Chapter 11 of the U.S. Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy, in which the debtor usually continues to operate as a business, remains in possession of its property and assets, has the powers and duties of a trustee, and may, with court approval, borrow new money.

A deal reached last week with a Boston-based company could result in some Big Lots discount retail stores remaining open under that brand.

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With BizWest since 2012 and in Colorado since 1979, Dallas worked at the Longmont Times-Call, Colorado Springs Gazette, Denver Post and Public News Service. A Missouri native and Mizzou School of Journalism grad, Dallas started as a sports writer and outdoor columnist at the St. Charles (Mo.) Banner-News, then went to the St. Louis Post-Dispatch before fleeing the heat and humidity for the Rockies. He especially loves covering our mountain communities.
Categories: Brighton Retail Sunday Weekly Today's News Big Lots Inc. Gordon Brothers Retail Partners LLC Nexus Capital Management Variety Wholesalers Inc.
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