Some Big Lots stores may remain open amid bankruptcy

National retailer Big Lots, which is based in Columbus, Ohioannounced this week that it has found a buyer that will keep at least 200 stores open while likely keeping some staff intact.

Earlier this month, Big Lots announced it would begin conducting going-out-of-business (GOB) sales at all of its remaining stores after failing to reach a purchase agreement with Nexus Capital Management.

Now, the discount retailer has reached a deal with Gordon Brother Retail Partners, LLC that allows for the transfer of Big Lots’ assets, which include stores, distribution centers and intellectual property, to other retailers and companies.

One of those companies that will acquire the assets is Variety Wholesalers, Inc., which owns over 400 retail stores in the Southeast and Mid-Atlantic United States under Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar and Bargain City Flags.

LARGE LOTS TO START “GOING OUT OF BUSINESS” SALES AT THE REST OF LOCATIONS

Variety Wholesalers seeks to acquire between 200 and 400 Big Lots stores, which it will continue to operate under the Big Lots brand, as well as two distribution centers.

Big Lots said in a press release that Variety Wholesalers “may” hire Big Lots associates at the acquired stores and distribution centers, as well as some corporate associates.

“The strategic sale of Gordon Brothers and transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective efforts of our team,” said Big Lots President and CEO Bruce Thorne. “This sale and transfer agreement represents the best opportunity to preserve jobs, increase the value of the property and ensure continuity of the Big Lots brand.” We are grateful to our associates across the country for their courage and resilience throughout this process.”

LARGE PLOTS TO CLOSE MORE THAN 50 RETAIL PLACES

Big Lots did not respond to FOX Business’ request for additional information.

The agreement between Big Lots and Gordon Brothers Retail Partners is subject to bankruptcy court approval.

Big Lots filed for Chapter 11 bankruptcy in early September to help facilitate the sale of “substantially all” of its assets to its “pursuer” Nexus Capital Management.

LARGE MANY BANKRUPTCY FILES, WILL CLOSE SOME STORES AMID SALE TO INVESTMENT FIRM

The discount retailer said at the time that its board concluded that “entering into a sale agreement with Nexus and initiating a court-supervised sale process is the best way forward to maximize value and ensure continued operations.” Nexus must be the winning bidder in a court-supervised auction to close the deal.

Before submission Chapter 11, Big Lots told the Securities and Exchange Commission it planned to close 35-40 stores, which quickly grew to hundreds. The retailer operates about 1,400 stores in the U.S. and employs more than 30,000 people.

In a Chapter 11 filing in September, Big Lots said there would be additional store closings, and in October announced 50 more store closings.

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The discount retailer is known for selling home goods, furniture, seasonal decorations and other products.

In the second quarter, Big Lots generated $1.05 billion in net sales, down more than 8% from the same quarter last year. Its quarterly net loss was nearly $238.46 million.

FOX Business’ Pilar Arias contributed to this report.