Done Deal: Big Lots closes sale to Gordon Brothers Retail Partners
Big Lots has completed a deal that will save up to 400 of its approximate 950 stores from going out of business.
The closeout retailer said that it has successfully closed its sale agreement with Gordon Brothers Retail Partners that will enable Variety Wholesalers to acquire between 200 and 400 Big Lots stores and up to two distribution centers. Variety plans to operate the stores under the Big Lots brand.
Big Lots, which filed for bankruptcy in September, announced the deal at the end of December, after its plan be acquired by Nexus Capital Management fell through and the retailer said it would hold store closing sales at its locations nationwide.
"We are pleased to close this strategic transaction, which provides a framework to preserve thousands of jobs, maximize value, and maintain the Big Lots brand,” said Big Lots president and CEO Bruce Thorn. “We are working closely with the Gordon Brothers and Variety Wholesalers teams on this transition. We are grateful for the continued hard work and dedication of Big Lots associates across the Company."
As part of the deal, Variety may employ Big Lots employees at the acquired stores and distribution centers, as well as select corporate associates needed to support Big Lots' go-forward footprint.
"Variety is thrilled to officially welcome the Big Lots brand and looks forward to operating hundreds of Big Lots store locations,” said Lisa Seigies, president and CEO, Variety Wholesalers. “This strategic acquisition allows us to serve additional customers and communities. We plan to combine the best of Variety with the best of Big Lots and are excited about the possibilities ahead."
Gordon Brothers' real estate services team will handle real estate matters for Gordon Brothers as well as Variety Wholesalers.
“We were proud to support Big Lots through the restructuring process to enable the company's continued operation, and look forward to working with Variety Wholesalers to support Big Lots' go-forward footprint," said Kyle Shonak, chief transaction officer, Gordon Brothers.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Real Estate Partners is serving as real estate advisor to the company.
Riemer & Braunstein LLP acted as counsel and M3 Partners LP acted as financial advisor to to Gordon Brothers.
