Some Big Lots stores could remain open amid bankruptcy

National retailer Big Lots, which is based Columbus, Ohioannounced this week that it had found a buyer that would keep at least 200 stores open while possibly keeping some staff intact.

Earlier this month, Big Lots announced it would begin Going Out of Business (GOB) sales at all of its remaining stores after failing to reach a buyout agreement with Nexus Capital Management.

Now, the discount retailer has reached an agreement with Gordon Brother Retail Partners, LLC that will allow Big Lots’ assets, which include stores, distribution centers and intellectual property, to be transferred to other retailers and companies.

One of those companies that will acquire the assets is Variety Wholesalers, Inc., which owns more than 400 retail stores in the Southeastern and Mid-Atlantic U.S. Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Under the Super Dollar and Bargain City Banners.

LARGE LOTS WILL BEGIN GOING OUT OF BUSINESS SALES AT REMAINING LOCATIONS

Big Lots store in Los Angeles on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)

Variety Wholesalers wants to acquire 200 to 400 Big Lots stores, which it will continue to operate under the Big Lots brand, as well as two distribution centers.

A press release from Big Lots said Variety Wholesalers “may” hire Big Lots associates at the acquired stores and distribution centers, as well as certain corporate partners.

“The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots, reflecting the tireless work and collective efforts of our team,” said Big Lots President and CEO Bruce Thorne. This sale agreement and transfer is the strongest opportunity to preserve jobs, maximize property value and ensure the continuity of the Big Lots brand for diligence and resilience.”

LARGE LOTS to cover OVER 50 TREES

The Big Lots logo on shopping carts 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 additional information.

The agreement between Big Lots and Gordon Brothers Retail Partners is subject to bankruptcy court approval.

Big Lots began Chapter 11 bankruptcy proceedings in early September to help facilitate the sale of “substantially all” of its assets to its “stalking horse bidder,” Nexus Capital Management.

BIG FILES FOR BANKRUPTCY, CLOSING SOME STORES FOR SALE TO INVESTMENT COMPANY

A customer shops at a Big Lots store on June 7, 2024 in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)

It discount retailer said at the time that its board concluded that “entering into a Sale Agreement with Nexus and initiating a court-supervised sale process is the best way to maximize value and ensure continued operations.” Nexus should be the winner of the court-supervised auction , to close the transaction.

Before submitting Chapter 11, Big Lots told the Securities and Exchange Commission it plans to close 35-40 stores, which has quickly grown to hundreds. The retailer operates about 1,400 stores in the U.S. and employs more than 30,000 people.

In a September Chapter 11 filing, Big Lots said there would be additional store closings and announced in October that 50 more stores would close.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

The discount retailer is known for selling home goods, furniture, seasonal jewelry and more.

Big Lots generated net sales of $1.05 billion in the second quarter, down more than 8% from the same three months last year.Its quarterly net loss was about $238.46 million.

FOX Business’ Pilar Arias contributed to this report.