Big Lots strikes deal to keep hundreds of stores open and save jobs

Big Lots, the discount concatenation that filed for bankruptcy successful September, said Friday that it agreed to a merchantability transaction with an concern firm, allowing hundreds of stores to enactment unfastened by transferring its spot to different retailers and companies.

The Columbus, Ohio-based institution precocious announced it was preparing to close its remaining 963 locations after an acquisition by private-equity steadfast Nexus Capital Management fell through. Big Lots' caller woody is with Gordon Brothers Retail Partners, which volition facilitate the transportation of its brand, stores and organisation centers.

Variety Wholesalers, which owns much than 400 retail stores including Bargain Town, Bill's Dollar Stores and Maxway, volition get betwixt 200 and 400 Big Lots stores and up to 2 organisation centers, according to Big Lots' quality release.

Big Lots' caller woody could forestall thousands of its employees from being laid off. Variety Wholesalers said it whitethorn employment Big Lots unit astatine the stores and organisation centers, arsenic good arsenic immoderate firm associates.

"This merchantability statement and transportation contiguous the strongest accidental to sphere jobs, maximize worth for the property and guarantee continuity of the Big Lots brand. We are grateful to our associates nationwide for their grit and resilience passim this process," said Bruce Thorn, Big Lots' president and main executive.

It's unclear however galore Big Lots employees could stay but up to 555 firm employees were astatine hazard of losing their job, according to a layoff notice. Another 505 employees were astatine hazard successful Pennsylvania opening January 6, according to different announcement filed by the company.

A Big Lots spokesperson told CNN connected Saturday that they could not supply further details astir the deal.

Big Lots is among the galore well-known retailers to record for bankruptcy successful 2024 arsenic consumers chopped into discretionary spending. Last week, Party City announced it filed for bankruptcy extortion and would adjacent each of its much than 800 stores.

Retail chains person cited precocious ostentation and involvement rates for struggling sales. Meanwhile, consumers person sought worth implicit little costs - a cardinal crushed bargain stores person struggled portion Walmart and Amazon person thrived.

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