Retail chain company Big Lots has announced a sale transaction with Gordon Brothers Retail Partners that will see the transfer of former’s assets to other retailers.
This move includes the sale of between 200 and 400 stores and up to two distribution centres to Variety Wholesalers.
The agreement aims to preserve the Big Lots brand, as well as hundreds of stores and thousands of jobs.
Variety Wholesalers plans to continue operating the acquired stores under the Big Lots brand and may also employ Big Lots associates at these stores and distribution centres. This includes certain corporate associates needed to support the ongoing operations.
Big Lots president and CEO Bruce Thorn said: “The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favourable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team.
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximise value for the estate and ensure continuity of the Big Lots brand. We are grateful to our associates nationwide for their grit and resilience throughout this process.”
In September this year, Big Lots and its subsidiaries entered into an asset purchase agreement with Gateway BL Acquisition, an affiliate of Nexus Capital Management.
However, in December, Nexus terminated this agreement and requested a reimbursement of $1.5m in expenses.
The transaction is pending approval by the Bankruptcy Court and is subject to other customary closing conditions.
Gordon Brothers Retail Partners North America Retail head Rick Edwards said: “We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience.”
Legal, financial, and real estate advisors have been engaged to assist Big Lots with the transaction process.
Davis Polk & Wardwell is providing legal counsel, Guggenheim Securities is the financial advisor, AlixPartners is the restructuring advisor, and A&G Real Estate Partners is advising on real estate matters.
Riemer & Braunstein acted as counsel to Gordon Brothers, with their Real Estate Services team handling real estate aspects for the buyer.
“Big Lots agrees to sale transaction with Gordon Brothers Retail Partners” was originally created and published by Retail Insight Network, a GlobalData owned brand.
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