Amidst closing sales already ongoing at their area stores, Big Lots, Inc. announced on Friday that it has agreed to a sales transaction to Gordon Brothers Retail Partners, LLC that will enable the trans-fer of Big Lots assets, including stores, distribution centers, and intellectual property, to other retail-ers and companies, including Variety Wholesalers, Inc. Variety has said they would purchase between 200-400 of the stores saving them from the chopping block.
By David Taylor / Managing Editor
Amidst closing sales already ongoing at their area stores, Big Lots, Inc. announced on Friday that it has agreed to a sales transaction to Gordon Brothers Retail Partners, LLC that will enable the transfer of Big Lots assets, including stores, distribution centers, and intellectual property, to other retailers and companies, including Variety Wholesalers, Inc.
The sale is good news for employees who, just days after Christmas, thought they might be losing jobs with the closure. Not all stores will stay open, and it remains to be seen which stores will be saved in the end.
Big Lots, Inc. filed for bankruptcy protection back in September and thought there might be a deal to sell to Nexus, but that deal fell through in early December.
The Gulf Coast area has eight locations including one in North Shore at 5807 East Sam Hoston Parkway. Other stores include locations at 919 N. Shepherd Dr., 9795 Westheimer Road, and stores in Webster, Pasadena, Humble, Porter, and Sugar Land. A list of store closings, obtained by USA Today, showed four locations in the area were already closed in Galveston, 5910 Broadway St., Store # 47, Houston, 10951 FM 1960 Rd. W, Store #103, Houston, 8210 Kirby Dr., Store #111 and Baytown, 4815 East Freeway, Store #222.
The company had announced earlier in the year it would be closing 315 stores across 35 states. Then came the possibility of shuttering every store across the country affecting some 30,000 workers with the closure of the remaining 1,400 stores.
It was reported that the chain’s stock took a nosedive of 90 percent in one year sending them into panic mode.
“The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team,” said Bruce Thorn, Big Lots’ president and chief executive officer. “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. We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Rick Edwards, Gordon Brothers Retail Partners’ Head of North America Retail, said, “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.”
Variety Wholesalers, Inc. already owns more than 400 retail stores in the Southeast and Mid-Atlantic United States under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar, and Bargain Town banners. They have announced they intend to acquire between 200 and 400 Big Lots stores which they plan to continue to operate under the Big Lots brand moving forward. They will also purchase at least two distribution centers to support the ongoing footprint of the chain.
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” said Lisa Seigies, Variety Wholesalers’ president and CEO. “We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.”
The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.
Big Lots closures join other big box retailers who blame the economy and inflation for closing. Party City and Staples in The Shops at Stone Park on Wallisville and Beltway 8 have shuttered, along with Office Depot on I-10 and Uvalde, and Rue21 at 5830 East Sam Houston. Other retailers planning closures of some stores or have filed for bankruptcy, or reorganization around the area and country include The Container Store, TGI Fridays, American Freight, buybuy Baby, Macy’s, Walgreens, CVS, Rite Aid, Red Lobster, 7-Eleven, Joann’s, and LL Flooring (formerly Lumber Liquidators).