Total holiday spending this year is expected to be at least $24 billion higher than last year, according to the National Retail Federation.
National retailer Big Lots, which in Columbus, Ohioannounced this week that it has found a buyer that will keep at least 200 stores open while possibly keeping some employees intact.
Earlier this month, Big Lots announced it was holding a Going Out of Business (GOB) sale at all of its remaining stores after failing to reach a purchase agreement with Nexus Capital Management.
Now, the discount retailer has reached an agreement with Gordon Brother Retail Partners, LLC that will allow it to transfer Big Lots' assets, which include stores, distribution centers and intellectual property, to other retailers and companies.
One of those companies acquiring these assets is Variety Wholesalers, Inc. has more than 400 retail stores in the Southeastern and Mid-Atlantic United States under the Roses, Roses Express, Maxway, Bill's Dollar Stores, Super 10, Super Dollar and Bargain brands. City banners
Lots to start holding “going out of business” sales at remaining locations
A Big Lots store in Los Angeles, on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Variety Wholesalers is looking to acquire between 200 and 400 Big Lot stores, which will continue to operate under the Big Lot brand, as well as two distribution centers.
Big Lots said in a press release that Variety Wholesalers “may hire” Big Lots associates in the acquired stores and distribution centers, as well as some corporate partners.
“The strategic sale to Gordon Brothers and the move to Variety Wholesalers is a favorable and significant achievement for Big Lots, which reflects the tireless work and collective effort of our team,” said Bruce Thorne, Big Lots President and CEO. “This sale and transfer agreement provides the strongest opportunity to preserve businesses, maximize value for the asset and ensure the continuity of the Big Lots brand. We are grateful to our associates across the country for their grace and flexibility throughout this process.”
Lots of doors for over 50 retail locations
The Big Lots logo on a shopping cart in front of a Big Lots store on June 7, 2024 in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)
Big Lots did not respond to FOX Business' request for more information.
The deal between Big Lots and Gordon Brothers Retail Partners is subject to bankruptcy court approval.
Big Lots filed for Chapter 11 bankruptcy in early September to help facilitate the sale of “substantially all” of its assets to “stalking horse bidder” Nexus Capital Management.
Major bankruptcy filings close some stores amid sales to investment firms
A customer shops at Big Lots on June 7, 2024 in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)
particle for direct object Discount retailer It said at the time that its board had concluded that “entering into a sale agreement with Nexus, and beginning a court-supervised sale process, is the best way to maximize value and ensure continued operations.” Nexus must be the winning bidder in the court-supervised auction to close the deal.
Before filing Chapter 11 Big Lots told the Securities and Exchange Commission that it planned to close 35 to 40 stores, which quickly grew to hundreds. The retailer has about 1,400 stores across the United States and employs more than 30,000 people.
In September's Chapter 11 filing, Big Lots said more stores would be closing, and in October it announced 50 more.
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The discount retailer is known for selling home goods, furniture, seasonal decorations and other products.
In the second quarter, Big Lots had net sales of $1.05 billion, down more than 8 percent from the same quarter last year. Its quarterly net loss was nearly $238.46 million.
Pilar Arias of FOX Business contributed to this report.