The owner of the Roses Discount Store retail store chain has reached an agreement to acquire between 200 and 400 Big Lots stores and keep the brand name.
The deal, announced Friday, involves Variety Wholesalers Inc. and Gordon Brothers Retail Partners LLC, which Big Lots hired in September to manage the divesting of the stores.
The companies have not said which stores will transfer to Variety.
Variety, based in North Carolina, currently with about 400 stores in 15 states, would nearly double its portfolio that also includes Bargain Town, Bill’s Dollar Stores, Maxway, Roses Express, Super Dollar and Super 10. Variety also plans to take over one to two Big Lots distribution centers.
Variety said it “may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forth footprint.â€
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“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,†said Lisa Seigies, Variety Wholesalers’ president and chief executive.
Former N.C. Republican legislator Art Pope is chairman and chief executive of Variety Wholesalers. Pope also founded the conservative think tank the Civitas Institute and co-founded the John Locke Foundation and the James G. Martin Center for Academic Renewal.
“The strategic sale to Gordon Brothers and transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots,†said Bruce Thorn, Big Lots’ president and chief executive. “It presents the strongest opportunity to preserve jobs, maximize value for the estate, and ensuring continuity of the Big Lots brand.â€
Big Lots has cited the lingering impact of the COVID-19 pandemic upon retail shopping and inflationary factors in its sourcing for part of its financial challenges.
Gordon Brothers said it is selling other Big Lots stores, distribution centers and other assets to other retailers and companies. All of the agreements required bankruptcy court approval.
Big Lots entered bankruptcy on Sept. 8 with an affiliate of Nexus Capital Management LP agreeing to serve as the stalking horse bidder.
Nexus has committed to providing Big Lots with $707.5 million in financing, including $35 million in new financing from certain of its current lenders, in the form of a post-petition credit loan. At that time, the parties anticipate closing the transaction during the fourth quarter of 2024.
However, Big Lots confirmed Dec. 19 the Nexus affiliate deal had fallen through, and that Big Lots would pay the affiliate $1.5 million in expense reimbursement.
At that time, Big Lots said “it is preparing to commence going-out-of-business sales at all remaining Big Lots store locations to protect the value of its estate.â€
