Columbus, Ohio—Big Lots, a Top 50 store, has a new buyer lined up, pending court permission.
The bargain retailer said on December 27 that it and Gordon Brothers Retail Partners had negotiated an asset purchase deal that permits Big Lots to transfer its shops, distribution facilities, and intellectual property to other retailers and businesses, such as Variety Wholesalers Inc.
The purchase price includes a maximum debt payoff of $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, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.
In a press release, Bruce Thorn, president and CEO of Big Lots, stated, “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.”The best chance to protect jobs, increase estate value, and maintain the Big Lots brand is through this selling agreement and transfer. We appreciate the perseverance and fortitude of our colleagues across the country during this process.
In accordance with the arrangement, Variety Wholesalers will purchase 200–400 Big Lots stores and maybe two distribution centers, which it will then run under the Big Lots name. Variety Wholesalers may also hire Big Lots employees at the stores and distribution facilities it has bought, in addition to specific corporate employees required to support the company’s future growth.
Under the names Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar, and Bargain Town, Variety Wholesalers, a company based in Henderson, North Carolina, owns and runs 380 locations in the Southeast United States.
“To offer a future for the Big Lots brand and hundreds of its locations, we are thrilled to collaborate with Gordon Brothers. The president and CEO of Variety Wholesalers, Lisa Seigies, stated, “We are eager to collaborate with the Big Lots team to achieve the exciting opportunities that lie ahead.”
The court’s approval and additional normal closing requirements apply to the Gordon Brothers APA.
Rick Edwards, head of North America Retail for Gordon Brothers Retail Partners, stated, “We are happy to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue serving customers with extreme bargains and an outstanding shopping experience.”
With an estimated $1,000,000,001 to $10 billion in assets and $1,000,000,001 to $10 billion in liabilities to an estimated 5,001 to 10,000 creditors, Big Lots filed for Chapter 11 protection on September 9. An APA with Nexus Capital Management was announced that same day, but it fell through early this month.
All of Big Lots’ locations are now having going out of business sales.
