Retailer Big Lots on Tuesday received a bankruptcy judge’s approval; allowing 200 to 400 stores to remain open under new ownership. IF the transaction can be finalized!
Quoted, https://www.biglots.com/ 01/02/2025
SOME JOBS SAVED!
U.S. Bankruptcy Judge Kate Stickles has approved a revised asset sale for Big Lots during a court hearing in Wilmington, Delaware, marking a critical development in the embattled retailer’s attempt to salvage its business. Judge Stickles described the sale as the best available option after an earlier agreement with private equity firm Nexus Capital fell apart.
Big Lots, the fourth-largest home goods retailer in the U.S., filed for bankruptcy protection in September 2024, initially planning to sell its operations to Nexus Capital. However, that deal unraveled earlier this month, prompting the company to initiate going-out-of-business sales at nearly 900 remaining stores. In a last-minute effort to stave off full liquidation, Big Lots secured a backup deal with investment firm Gordon Brothers Retail Partners to sell its stores, distribution centers, and intellectual property.
As part of the agreement, Variety Wholesalers, a privately owned retailer, plans to acquire between 200 and 400 Big Lots locations. This transaction is expected to preserve 5,000 to 10,000 jobs and maintain the Big Lots brand in some capacity. Despite this, the scaled-back deal will leave many of Big Lots’ vendors, including major mattress manufacturers Tempur Sealy and Serta Simmons, unpaid for recent shipments.
Beth Rogers, an attorney representing Serta, highlighted the dire situation for creditors, noting that Big Lots incurred an additional $250 million in debts after filing for bankruptcy. Vendors argued that Gordon Brothers should not be permitted to acquire Big Lots’ assets without fulfilling the company’s outstanding obligations to suppliers.
At its peak, Big Lots operated 1,300 stores, employed over 27,000 workers, and generated $4.7 billion in revenue in 2023. However, declining sales over the past several quarters and an overburdened balance sheet—including $556.1 million in debt—forced the retailer into bankruptcy.
While the approved sale offers a lifeline to part of the company, it represents only a fraction of its former scale. The transaction underscores the broader struggles facing mid-tier retailers in an era dominated by e-commerce giants, changing consumer preferences, and increasing economic pressures. For many creditors and employees, the approved deal brings mixed emotions, offering a glimmer of hope but leaving significant losses in its wake.
Author Ryan Bridglal, 01/02/205