Big Lots stores to remain open after last-ditch sale completed
COLUMBUS, Ohio (WCMH) -- Big Lots is under new ownership after a last-minute sale went through that will keep hundreds of stores in operation and prevent thousands of layoffs.
The Columbus-based retailer announced this month it closed a previously announced sale agreement with Gordon Brothers Retail Partners. The agreement will enable Variety Wholesalers to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand, and up to two distribution centers.
"We are pleased to close this strategic transaction, which provides a framework to preserve thousands of jobs, maximize value, and maintain the Big Lots brand," said Bruce Thorn, Big Lots' president. "We are working closely with the Gordon Brothers and Variety Wholesalers teams on this transition."
Variety Wholesalers may also employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support Big Lots' "go-forward" footprint. Gordon Brothers supported the transaction by securing a $200 million delayed draw term loan and a $150 million debtor-in-possession term loan.
It's unclear if Big Lots' previously announced mass layoffs will continue. The retailer said in a December city notice that employees based at the company's northeast Columbus headquarters at 4900 E. Dublin Granville Rd. will be terminated. The letter says the "mass layoffs" are expected to conclude by April of this year. Watch a previous NBC4 report on Big Lots' layoffs in the video player above.
The notice followed another announcement that Big Lots would begin "going out of business" sales at all of its remaining locations after failing to complete a previously announced $765 million sale to Nexus Capital Management, a private equity firm. More than 400 stores nationwide have closed in 2024, marking a 30% reduction in its footprint.
The company began auctioning off the leases of 170 locations that already closed in December in preparation for Nexus' acquisition. Several Ohio stores were included in the lease auction, including those in Blue Ash, Cincinnati, Grandview Heights, Highland Heights, Mount Vernon, North Olmstead and Westerville.
Big Lots filed for Chapter 11 proceedings in September. At the time, the chain also entered into the sale agreement with Nexus, which was set to acquire all of the company's assets and business operations.