Big Lots Strikes Deal to Save Stores, Stop Brand From Closing

-- Bankrupt Big Lots Inc. has struck a deal to save hundreds of stores after an earlier sale of the business fell apart, saving the chain from closing down entirely. The company said Friday it has agreed to a transaction with Gordon Brothers Retail Partners LLC that will facilitate the transfer of Big Lots’ brand, stores and distribution centers to other operators. The proposed transaction would avert the potential closing of all Big Lots locations after an earlier deal to sell the business to Nexus Capital Management LP unraveled earlier this month. Big Lots said Variety Wholesalers Inc., which operates several discount chains in the Southeast and mid-Atlantic region, intends to acquire between 200 and 400 locations as part of the transaction, the company said. The company subsequently announced in bankruptcy court that it would begin going out-of-business sales at about 870 locations and advisers worked to find an alternative transaction to save hundreds of Big Lots stores.