- Big Lots has reached a deal it says would preserve 200 to 400 US stores.
- The agreement with Gordon Brothers Retail Partners followed the collapse of a rescue plan.
- The company says that if approved, the $496 million deal could preserve thousands of jobs.
The Big Lots story isn’t over yet.
The discount chain said on Friday that it had reached a deal with Gordon Brothers Retail Partners that would preserve at least 200 stores across the US and possibly as many as 400.
If the deal is approved, the remaining Big Lots stores and brand will be transferred to Variety Wholesalers, a privately held owner of more than 400 discount stores across the Southeast and mid-Atlantic.
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand,” CEO Bruce Thorn said in a statement.
The agreement followed the collapse of a rescue plan with Nexus Capital Management that Big Lots said became unviable after Nexus required additional equity financing and $20 million in additional savings.
The new $496 million deal includes $304 million in debt payments and $17 million for unpaid rent. The company said the agreement could preserve thousands of jobs at stores and distribution centers and certain corporate roles.
Several creditors have filed objections to various terms of the deal, which was presented in US bankruptcy court on Monday.
“There is no alternative to the Sale other than a liquidation, and the Debtors’ estates and their creditors are better off if the Sale were to close,” the company said in its motion proposing the deal.
It said it started going-out-of-business sales and stopped ordering inventory, adding that “with each passing day the value of these estates decreases.”
With this latest lifeline, there’s still a chance your local Big Lots will keep the lights on after all.
Big Lots, the popular discount retailer, has just received a last-minute lifeline that will help them stay afloat during these uncertain times. The company announced today that they have secured a new financing deal that will provide them with much-needed capital to weather the storm caused by the ongoing pandemic.
This news comes as a relief to many loyal customers who rely on Big Lots for affordable household goods, furniture, and more. With so many retailers struggling to stay in business, it’s heartening to see a company like Big Lots find a way to survive and continue serving their customers.
The details of the financing deal are still being worked out, but Big Lots has assured customers that they will continue to operate as usual and provide the same great deals and products that they are known for. This news is a ray of hope in an otherwise challenging retail landscape, and we can all breathe a little easier knowing that Big Lots will be sticking around for the long haul.
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Big Lots, last-minute lifeline, retail news, discount store update, financial rescue, Big Lots store update, retail industry news, Big Lots financial news, retail store lifeline.
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