COLUMBUS, Ohio (WCMH) — Big Lots is under new ownership after a last-minute sale went through that will seemingly keep hundreds of stores in operation and prevent thousands of layoffs.
The Columbus, Ohio-based retailer announced this month it closed a previously announced sale agreement with Gordon Brothers Retail Partners. The agreement will enable Variety Wholesalers to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand, and up to two distribution centers.
Macy’s, Kohl’s announce nationwide store closures: Here’s where
“We are pleased to close this strategic transaction, which provides a framework to preserve thousands of jobs, maximize value, and maintain the Big Lots brand,” said Bruce Thorn, Big Lots’ president. “We are working closely with the Gordon Brothers and Variety Wholesalers teams on this transition.”
Variety Wholesalers may also employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support Big Lots’ “go-forward” footprint. Gordon Brothers supported the transaction by securing a $200 million delayed draw term loan and a $150 million debtor-in-possession term loan.
It’s unclear if Big Lots’ previously announced mass layoffs will continue. In December, Big Lots confirmed employees based at its Columbus headquarters would be terminated.
The notice followed another announcement that Big Lots would begin “going out of business” sales at all of its remaining locations after failing to complete a previously announced $765 million sale to Nexus Capital Management, a private equity firm. More than 400 stores nationwide have closed in 2024, marking a 30% reduction in its footprint.
Roughly 900 Big Lots locations remain open, according to the company’s website.
TikTok denies reported Elon Musk sale: ‘Pure fiction’
The company began auctioning off the leases of 170 locations that already closed in December in preparation for Nexus’ acquisition. Earlier this week, Gordon Brothers listed more than 480 Big Lots leases across 47 states as available for sale. It described the listings, which include stores not previously designated for closure, as “new-to-market.”
The locations are in Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, and Wyoming. The brochure notes, however, that sales are subject to court approval.
As of Jan. 15, the Big Lots website still says all stores are closing.
Big Lots filed for Chapter 11 proceedings in September. At the time, the chain also entered into a sale agreement with Nexus, which was set to acquire all of the company’s assets and business operations.
