Big Lots secures new deal, seeks court approval
Should it be approved, the asset purchase agreement will keep between 200 and 400 of the Top 100 retailer's stores open.
COLUMBUS, Ohio — Pending court approval, Top 100 retailer Big Lots has lined up a new buyer.
On Dec. 27, the Columbus, Ohio-based discounter revealed that it reached an asset purchase agreement with Gordon Brothers Retail Partners that enables the transfer of Big Lots assets, including stores, distribution centers and intellectual property to other retailers and companies, including Variety Wholesalers Inc.
Documents filed with the U.S. Bankruptcy Court for the District of Delaware revealed the purchase price includes the debt payoff amount of no more than $304 million; $17 million for unpaid “stub” rent; $42.391 million for the APA administration budget; $125 million for amounts in the winddown budget; and $7.5 million for the professional fee escrow account.
“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 CEO, in a release.” 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.”
Under the terms of the agreement, Variety Wholesalers intends to acquire between 200 and 400 Big Lots stores and up to two distribution centers and plans to operate them under the Big Lots brand moving forward. In addition, Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forward footprint.
Henderson, N.C.-based Variety Wholesalers owns and operates 380 stores in the Southeastern U.S. under the Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain Town banners.
“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,” said Lisa Seigies, Variety Wholesalers’ president and CEO.
The Gordon Brothers APA is subject to approval by the court and other customary closing conditions.
“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,” said Rick Edwards, Gordon Brothers Retail Partners’ head of North America Retail.
On Sept. 9, Big Lots filed for Chapter 11 protection, citing estimated assets of $1,000,000,001 to $10 billion against estimated liabilities of $1,000,000,001 to $10 billion to an estimated 5,001 to 10,000 creditors. That same day, it announced an APA with Nexus Capital Management, which fell through earlier this month.
Currently, Big Lots is in the midst of going out of business sales at all its locations.
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