Big Lots announces deal with Gordon Brothers, Peru store future not known yet

Big Lots reached a deal Friday to keep hundreds of its stores open but it is unclear how it will affect the Peru store.

Big Lots Account Associate Jillian Choy said in an email that the company was unable to provide any additional details about the Peru store at this time.

The company said in a Friday news release it has agreed to a sale transaction with Gordon Brothers Retail Partners LLC (Gordon Brothers Retail Partners) that enables the transfer of Big Lots assets.

“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,” Rick Edwards, Gordon Brothers Retail Partners' head of North America Retail said in the release.

Big Lots Inc., which filed for bankruptcy in September, announced Dec. 19 that it would no longer be able to complete its previously announced asset purchase agreement with Nexus Capital Management and was preparing to move forward with going-out-of-business sales at all remaining Big Lots stores.

Variety Wholesalers, according to the news release, owns more than 400 retail stores in the Southeast and Mid-Atlantic United States and intends to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand moving forward, and up to two distribution centers.

“Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forward footprint,” the company said in the release.

Bruce Thorn, Big Lots' president and CEO, said in the release that the strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of the team.

“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,” he said. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”

Lisa Seigies, Variety Wholesalers' president and CEO, said they are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores.

“We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead,” she said in the news release.

The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.