Big Lots Receives Bankruptcy Judge’s Approval for Sale of 200-400 Stores
Carle Place, N.Y. – In a last-minute deal, Big Lots has received approval from a U.S. Bankruptcy Judge to sell 200 to 400 of its stores under new ownership. The sale, which was approved at a court hearing in Wilmington, Delaware, is seen as the best option for Big Lots after a previous sale agreement fell apart earlier this month.
As part of the deal, privately owned retailer Variety Wholesalers will acquire the select Big Lots stores, distribution centers, and intellectual property. The sale is expected to preserve 5,000 to 10,000 jobs and keep the company’s brand alive.
However, the scaled-back transaction will not provide enough money to fully repay Big Lots’ vendors, such as mattress makers Tempur Sealy and Serta Simmons, which have continued to sell goods to the company after its bankruptcy filing. Many of these vendors objected to the sale, arguing that Gordon Brothers Retail Partners should not be allowed to take Big Lots’ assets without paying off the company’s debts.
Big Lots continues to sell inventory even after realizing it will not have the funds to pay for it, accumulating $250 million in new debts that will likely go unpaid under the revised sale agreement. The company filed for bankruptcy in September and has been struggling with declining sales and a heavy debt burden, despite being the fourth-largest home goods retailer in the U.S. with 1,300 stores, $4.7 billion in 2023 revenue, and over 27,000 employees.
