Gordon Brothers has successfully completed the acquisition of Big Lots Inc., a leading Top 50 retailer, and facilitated its going-concern sale. This transaction, which was agreed upon in late 2024, enables the transfer of Big Lots’ key assets—stores, distribution centers, and intellectual property—to various retailers and companies, including Variety Wholesalers, Inc.
The completion of the deal, announced on January 9, ensures that Big Lots’ brand remains intact, with hundreds of its stores continuing to operate, safeguarding thousands of jobs. Gordon Brothers had previously played a vital role by providing a $200 million delayed draw term loan to support Big Lots’ turnaround strategy, as well as a $150 million debtor-in-possession loan during the retailer’s Chapter 11 bankruptcy proceedings.
In a statement, Kyle C. Shonak, Chief Transaction Officer at Gordon Brothers, emphasized the seamless execution of the sale and the positive impact it had on stakeholders, saying, “We worked closely with all parties to create a holistic, solutions-oriented sale, preventing a full liquidation and protecting jobs.”
The terms of the deal, although undisclosed, involved a debt payoff of up to $304 million, as well as various associated expenses. As part of the sale, Variety Wholesalers will acquire a minimum of 200 Big Lots stores, maintaining their operations and employees. Gordon Brothers will also assist in the transition by providing ongoing real estate services and managing the closure of stores not included in the sale.
Al Williams, Co-Head of North America Real Estate Services at Gordon Brothers, commented, “Through our partnership with Variety Wholesalers, we are ensuring the continued operation of Big Lots stores while keeping employees employed, a testament to the positive impact of our integrated services.”
Big Lots, which filed for Chapter 11 bankruptcy protection in September 2024, had been in the process of liquidation before the agreement with Gordon Brothers was finalized. The transaction has allowed the company to preserve its legacy and continue serving customers, ensuring that Big Lots remains a key player in the retail market.
