COLUMBUS, Ohio — After announcing on Dec. 19 that it planned to go out of business, discount chain Big Lots said Friday it had reached a deal to sell the company Gordon Brothers Retail Partners, LLC that will preserve hundreds of stores and thousands of jobs.
The deal allows Big Lots to transfer its assets — including stores, distribution centers, and intellectual property — to other retailers and companies, including Variety Wholesalers, which owns more than 400 retail stores in the Southeast and Mid-Atlantic, the company said.
Big Lots has a Williamsburg location at 6610 Mooretown Road, as well as a Yorktown location at 4318 George Washington Memorial Highway and a location in Newport News at 14347 B Warwick Blvd. What stores will remain open has not been specified.
“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,” Bruce Thorn, Big Lots President and Chief Executive Officer, said. “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.”
According to Big Lots, Variety Wholesalers intends to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand, and up to two distribution centers. It will also employ Big Lots associates at the acquired stores and distribution centers, as well as “certain corporate associates needed to support the go-forward footprint.”
“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,” Rick Edwards, Gordon Brothers Retail Partners’ Head of North America Retail, said.
Lisa Seigies, Variety Wholesalers’ President and CEO, added, “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.”
The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.
Party City
Meanwhile, Party City Holdco Inc. announced plans on Dec 21 to commence a wind-down of its retail and wholesale operations and hold going-out-of-business sales at its approximately 700 stores nationwide.
The company said the decision was made following efforts to find a path forward that would allow continued operations in an environment driven by inflationary pressures on costs and consumer spending, among other factors.
The company said it and certain of its subsidiaries voluntarily filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.
The is a Party City located at 12134 Jefferson Ave. in Newport News.
