COLUMBUS, Ohio – Big Lots, Inc. has entered into a strategic sale agreement with Gordon Brothers Retail Partners, LLC, paving the way for the transfer of assets, including stores, distribution centers, and intellectual property, to other retailers and companies. Among the beneficiaries of this deal is Variety Wholesalers, Inc., a retail group operating over 400 stores across the Southeast and Mid-Atlantic under banners such as Roses, Roses Express, Maxway, and Super Dollar.
Key Details of the Agreement
Under the terms of the agreement:
- Variety Wholesalers plans to acquire between 200 and 400 Big Lots stores, which will continue to operate under the Big Lots brand.
- Variety Wholesalers may also purchase up to two distribution centers.
- The deal includes the potential for Variety Wholesalers to retain Big Lots associates, including those working in acquired stores, distribution centers, and corporate roles necessary to support the restructured operations.
The transaction is subject to approval by the Bankruptcy Court and other customary closing conditions.
Leadership Reactions
Big Lots President and CEO Bruce Thorn called the agreement a significant achievement that reflects the dedication of the company’s associates.
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate, and ensure continuity of the Big Lots brand,” Thorn said. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Rick Edwards, Head of North America Retail at Gordon Brothers Retail Partners, praised the agreement as a step forward for Big Lots. “We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience,” Edwards said.
Variety Wholesalers President and CEO Lisa Seigies expressed optimism about the partnership. “We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”
About the Buyers
Variety Wholesalers operates several discount retail brands across the Southeast and Mid-Atlantic, including Roses, Maxway, and Super Dollar. The company is known for providing budget-friendly shopping experiences and plans to maintain the Big Lots brand identity at the stores it acquires.
Gordon Brothers, an experienced restructuring firm, specializes in retail transformations and will manage real estate matters for the deal, including those involving Variety Wholesalers.
Process for Stakeholders
The agreement and related proceedings are managed under the jurisdiction of the Bankruptcy Court. Stakeholders, including creditors, can find court filings and additional details at Kroll Restructuring Administration’s website or by contacting Kroll directly at (844) 217-1398 (international callers: +1 646-809-2073) or via email at biglotsinfo@ra.kroll.com.
Advisors and Legal Representation
- Big Lots: Davis Polk & Wardwell LLP (legal), Guggenheim Securities, LLC (financial), AlixPartners LLP (restructuring), and A&G Real Estate Partners (real estate).
- Gordon Brothers: Riemer & Braunstein LLP (legal) and Gordon Brothers Real Estate Services (real estate).
- Variety Wholesalers: Cozen O’Connor (legal).
Looking Ahead
While the sale signals a significant shift for Big Lots, the agreement aims to preserve the iconic brand, ensure continuity of operations, and safeguard thousands of jobs across the U.S. As the transaction moves toward finalization, both customers and employees can expect a renewed focus on delivering value and sustaining the Big Lots shopping experience.
