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Big Lots stores in Ulster, Saugerties, and Wappingers Falls might not close as previously announced. A corporate liquidation company, Gordon Brothers Group, has reached an agreement to acquire up to 400 Big Lots locations nationwide, though specific sites have not been disclosed yet. This development comes after Big Lots announced plans to close all its stores following a $205 million loss in the first quarter of the year.
The deal involves transferring Big Lots assets, including stores and distribution centers, to other retailers such as Variety Wholesalers, Inc. Variety Wholesalers plans to acquire between 200 and 400 stores, which will continue operating under the Big Lots brand. They may also retain Big Lots employees at these locations.
Big Lots filed for Chapter 11 bankruptcy in September due to declining sales and a challenging consumer environment. The company initially planned to close all remaining stores after a failed sale agreement with Nexus Capital Management. However, the new deal with Gordon Brothers and Variety Wholesalers offers hope for preserving jobs and maintaining the Big Lots brand.
The agreement is subject to approval by the U.S. Bankruptcy Court and other customary closing conditions. Big Lots President and CEO Bruce Thorn expressed gratitude for the team's resilience and sees this as an opportunity to maximize value and ensure brand continuity.