It’s official: Gordon Brothers completes Big Lots purchase
With the sale complete, it is expected that Variety Wholesalers will acquire at least 200 of the Top 100 retailer's stores.
BOSTON — Gordon Brothers has completed the purchase of Top 100 retailer Big Lots Inc. and facilitated the discounter’s going concern sale.
The purchase, which was agreed to in late 2024, enables the transfer of Big Lots’ assets, including its stores, distribution centers and intellectual property, to other retailers and companies, including Variety Wholesalers, Inc.
In a release on Jan. 9 announcing the completion of the deal, Gordon Brothers noted that the move will preserve the brand, keeping hundreds of stores in operation and preventing thousands of layoffs.
Gordon Brothers had previously agented a $200 million delayed draw term loan providing liquidity in support of the company’s turnaround strategy and a $150 million debtor-in-possession term loan for Big Lots’ Chapter 11 bankruptcy proceedings in support of the sale process.
“Having established a strong working partnership with Big Lots, we executed seamlessly with all parties to provide the company and its stakeholders a holistic, solutions-oriented sale and avoid a full liquidation,” said Kyle C. Shonak, chief transaction officer, North America at Gordon Brothers. “Throughout the restructuring, our firm not only provided financing, but the guidance, expertise and services needed to develop and lead a multi-faceted solution to avoid layoffs and maximize value.”
Although a purchase price wasn’t disclosed, 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.
As part of this sale, Variety Wholesalers will acquire at least 200 stores that will operate under the Big Lots brand name and retain the employees needed for continued operations. The retailer is also exploring options for the associated distribution centers. Gordon Brothers will provide Variety Wholesalers ongoing real estate services to support the Big Lots go-forward footprint.
“Through our tireless efforts and close collaboration with Variety Wholesalers, we are not only enabling the continued operation of hundreds of Big Lots stores but also helping to keep employees in their jobs,” said Al Williams, co-head of North America Real Estate Services at Gordon Brothers. “This collaboration highlights the profound impact Gordon Brothers’ seamlessly integrated services can have on businesses and the communities they serve.”
Additionally, the firm is providing inventory and brand solutions while managing the closure of stores that will not go forward to facilitate the transition to Variety Wholesalers.
“We greatly benefitted from Gordon Brothers’ partnership, their expertise and all-encompassing, tailor-made solution and look forward to continuing to work with them as part of Big Lots’ transition,” said Lisa Seigies, president and CEO of Variety Wholesalers. “We are thrilled to have reached this agreement and continue on our path forward that allows Big Lots to preserve its legacy and continue to serve customers.”
On Sept. 9, 2024, 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 in December and the company began liquidation efforts at its stores before the asset purchase agreement with Gordon Brothers was announced.
Gordon Brothers’ Real Estate team is handling real estate inquiries.
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