Half Of Big Lots Stores Could Be Saved In Variety Wholesalers Deal

Core Viewpoint - Big Lots has reached a new deal that allows it to save up to half of its stores after filing for bankruptcy, with the transaction involving the transfer of its assets to Gordon Brothers Retail Partners [1][5][9]. Group 1: Bankruptcy and Deal Details - Big Lots filed for Chapter 11 bankruptcy protection in September, listing assets and liabilities between $1 billion and$10 billion [6]. - The company initially agreed to sell "substantially all" of its stores and operations to Nexus Capital Management for approximately $760 million, but this deal fell through due to creditor backlash [4][5][6]. - A judge approved the sale to Gordon Brothers, which includes repaying Big Lots' Chapter 11 loan and up to$17 million in outstanding rent and other fees related to the bankruptcy [8][9]. Group 2: Store Operations and Future Plans - Under the new agreement, Variety Wholesalers plans to acquire between 200 and 400 Big Lots stores and up to two distribution centers, intending to operate them under the Big Lots brand [2][3]. - Big Lots has commenced going out-of-business sales at its remaining stores and indicated that total liquidation would occur if the sale was not approved [7][11]. - The deal is seen as a significant achievement for Big Lots, aiming to preserve jobs and maximize asset value for creditors [10][11].