Big Lots files for bankruptcy, will close some stores amid sale to investment firm | Fox Business
Big Lots, the popular discount retail chain, announced on Friday a significant deal aimed at keeping hundreds of its stores open and saving thousands of jobs. This announcement follows the company’s bankruptcy filing in September and comes as a relief to employees and customers alike.
The Ohio-based retailer had previously planned to shut down its remaining 963 locations after an acquisition deal with Nexus Capital Management collapsed. However, a new agreement with Gordon Brothers Retail Partners offers hope. The deal ensures the transfer of Big Lots’ brand, stores, and distribution centers to other retailers, providing a lifeline for the struggling chain.
Variety Wholesalers, a retail group owning over 400 stores like Bargain Town, Bill’s Dollar Stores, and Maxway, will acquire between 200 and 400 Big Lots stores along with up to two distribution centers. This move could prevent thousands of employees from facing unemployment.
Variety Wholesalers also confirmed it might offer employment to Big Lots staff at both store and corporate levels. The exact number of jobs saved remains unclear, but earlier reports suggested that up to 1,060 jobs across corporate offices and Pennsylvania stores were at risk.
Bruce Thorn, Big Lots’ president and CEO, expressed gratitude to the company’s workforce for their dedication during this challenging time. He emphasized that the deal represents the best chance to protect jobs, maintain brand presence, and ensure business continuity.
Retail experts believe high inflation and rising interest rates have made it difficult for many chains to survive. Consumers are now prioritizing essential purchases, leaving discount retailers like Big Lots vulnerable.
In the past year, several other well-known retailers, including Party City, have filed for bankruptcy and closed numerous locations. Walmart and Amazon, on the other hand, continue to dominate the retail market by offering better value and convenience.
While Big Lots’ future remains uncertain, the latest agreement offers a glimmer of hope. The company’s spokesperson declined to share additional details but assured that updates would follow as the deal progresses.
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