Big Lots Secures Lifeline Deal with Henderson-Based Variety Wholesalers, Saving Stores, Jobs
Big Lots, the Columbus, Ohio-based discount retailer, has reached a pivotal agreement to keep hundreds of its stores and distribution centers open, potentially saving thousands of jobs. The deal, announced Friday, December 27, follows the company’s bankruptcy filing in September and represents a new chapter for the struggling retailer.
Big Lots has partnered with Gordon Brothers Retail Partners, a firm specializing in distressed companies, to facilitate the transfer of its brand, stores, and distribution centers. A key component of the deal involves Henderson, North Carolina-based Variety Wholesalers Inc., a company that owns Roses, Super 10, Bill’s Dollar Stores, and Maxway. Variety Wholesalers plans to acquire between 200 and 400 Big Lots locations, as well as up to two distribution centers, ensuring the Big Lots brand continues to serve communities.
“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,” said Bruce Thorn, Big Lots’ president and CEO. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Variety Wholesalers’ acquisition could prevent layoffs for many Big Lots employees, including those at its stores, distribution centers, and even some corporate staff. Layoff notices filed earlier this month warned that up to 555 corporate employees and 505 workers in Pennsylvania faced job losses starting in January. The new deal, however, offers a lifeline to those impacted.
Big Lots had previously announced plans to close its remaining 963 locations after a failed acquisition by private equity firm Nexus Capital Management. The partnership with Gordon Brothers and Variety Wholesalers marks a crucial turning point, ensuring that the Big Lots name lives on in many communities.
Variety Wholesalers, headquartered in Henderson, NC, operates over 400 discount stores across the Southeast and Mid-Atlantic regions, including its well-known Roses brand. The company’s regional roots and extensive retail expertise position it to revitalize and sustain Big Lots locations under the familiar brand name.
Big Lots is among many retailers grappling with the impact of high inflation and rising interest rates, which have shifted consumer spending habits. These economic pressures have hit discount retailers particularly hard, with many shoppers favoring larger players like Walmart and Amazon. In recent months, Party City also filed for bankruptcy and announced the closure of all its stores.
As Big Lots transitions into this new phase, the partnership with Variety Wholesalers represents a beacon of hope for employees and customers alike. With its acquisition of up to 400 locations, Variety Wholesalers not only preserves jobs but also solidifies its role as a key player in the regional retail landscape. This collaboration ensures that Big Lots continues to serve communities across the country while navigating the challenges of today’s retail environment.