Big Lots wins approval of rescue deal after creditor backlash

A former Big Lots store in Poway, Calif. Bankrupt retailer Big Lots Inc. won court approval of a rescue deal to save some of its stores from shutting down despite challenges from vendors that claimed the deal unfairly saddles them with steep losses. Judge J. Kate Stickles said late Tuesday she’d approve a sale of the retailer to Gordon Brothers Retail Partners, which intends to transfer between 200 and 400 Big Lots stores to Variety Wholesalers Inc. Big Lots has already commenced going-out-of-business sales at its more than 800 remaining stores and said it would launch a total liquidation of the business if the sale wasn’t approved. The retailer had no other options after the Nexus deal failed and a full liquidation would result in the loss of thousands of jobs and even worse losses for Big Lots creditors, company lawyer Adam Shpeen said.