Bankruptcy sale could save hundreds of stores

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Big Lot has received some good news that may prevent hundreds of stores from closing. On Tuesday, the company received approval from U.S. Bankruptcy Judge Kate Stickles for a last-minute sale that will allow 200 to 400 stores to continue operating under new ownership. Judge Stickles approved the deal during a court hearing in Wilmington, Del., saying it was the best option after a previous sales agreement failed. Big Lot filed for bankruptcy in September and initially sought to be sold to private equity firm Nexus Capital. However, the deal fell through earlier this month, prompting the company to begin liquidation sales of its remaining 900 stores. After Christmas, the retailer arranged a back-up plan to sell its stores, distribution centers and intellectual property in partnership with Gordon Brothers Retail Partners. As part of the deal, privately held retailer Variety Wholesalers agreed to purchase 200 to 400 stores. The sale is expected to retain 5,000 to 10,000 jobs and maintain the Big Lot brand. However, the sale would not provide enough funds to fully repay Big Lot's suppliers, including mattress makers Tempur Sealy and Serta Simmons, which continued to supply products after the bankruptcy filing. Many sellers objected, arguing the Gordon brothers should not take Big Lot's assets without repaying those debts. Serta's attorney, Beth Rogers, pointed out that Big Lot accumulated $250 million in new debt by ordering inventory it could not afford, which will likely not be repaid under the new agreement. At the time of the bankruptcy filing, Big Lot was the fourth-largest residential merchandise retailer in the U.S., with more than 1,300 stores and 2023 revenue of $4.7 billion. The company has been advertising discounts in stores in recent days. However, this may soon end with the latest update. Like this: Like Loading… Discover more from Baller AlertSubscribe to get the latest posts delivered to your email.

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