Big Lots says it found a buyer that will keep some stores open

Eight days after Big Lots announced plans for liquidation sales at all of its U.S. stores, the discount retailer said Friday it reached a deal with an asset buyer that will allow at least 200 stores to remain open and could preserve thousands of jobs.

If approved by bankruptcy court, the sale to Gordon Brothers Retail Partners would transfer Big Lots’ stores, distribution centers and other assets to companies including Variety Wholesalers, which is expected to acquire 200 to 400 Big Lots stores and continue to operate them under the Big Lots brand. The company may also retain some Big Lots workers.

It was unclear Friday how many other companies are involved in the deal and how many Big Lots stores could remain open in total.

Indiana has more than 40 Big Lots locations, with a dozen of those in the Indianapolis area. In July, Big Lots said the Indianapolis store at 8401 Michigan Road in Indianapolis would be closing along with stores in Kokomo, Elkhart, Fort Wayne and Warsaw.

Big Lots declined to add any information beyond its announcement Friday. Gordon Brothers did not immediately return requests for comment.

Bruce Thorn, Big Lots’ president and chief executive, said the sale agreement and transfer presents “the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand.”

Variety Wholesalers owns more than 400 retail stores operating in the Southeast and Mid-Atlantic under several brands, including Super Dollar, Bill’s Dollar Stores, Roses and Super 10.

Big Lots filed for bankruptcy in September. It said last week it would start going-out-of-business sales at its remaining 900 U.S. stores after a planned sale to an affiliate of the private equity firm Nexus Capital Management fell through.

Retail experts said a lackluster brand identity, flagging home goods sector and competition from online retailers and mass-discounters all contributed to Big Lots’ financial turbulence.

Other home-goods stores have faced similar pressures. Bed Bath & Beyond went through Chapter 11 reorganization after years of decline before it ultimately liquidated hundreds of stores in 2023, although online retailer Overstock later acquired its intellectual property and eventually struck a partnership with home-decor retailer Kirkland’s to open small-format stores.

U.S. retailers announced 7,327 store closures between the start of this year and mid-December, 57.8 percent more than the same period last year, according to a report from Coresight Research.