Big Lots, a discount chain that filed for bankruptcy in September, has agreed to a sale transaction with an investment firm, Gordon Brothers Retail Partners, to transfer its brand, stores, and distribution centers to other retailers and companies.
Variety Wholesalers, which owns over 400 retail stores, will acquire between 200 and 400 Big Lots stores and up to two distribution centers. The deal could prevent thousands of employees from being laid off, as Variety Wholesalers may employ Big Lots staff at the stores and distribution centers, as well as some corporate associates.
It is unclear how many Big Lots employees could remain, but up to 555 corporate employees were at risk of losing their job, according to a layoff notice. Another 505 employees were at risk in Pennsylvania beginning January 6.
Big Lots is among the many well-known retailers to file for bankruptcy in 2024 as consumers cut into discretionary spending. Retail chains have cited high inflation and interest rates for struggling sales, while consumers have sought value over lower costs, a key reason bargain stores have struggled while Walmart and Amazon have thrived.
Source: CNN
