EYE on RETAIL: Big Lots gets a lifeline
Big Lots, Inc., which recently announced a plan to close all its stores, has agreed to a sale transaction with Gordon Brothers Retail Partners, LLC. The deal enables the transfer of Big Lots assets, including stores, distribution centers and intellectual property, to other retailers and companies, including Variety Wholesalers, Inc., which owns more than 400 retail stores in the Southeast and Mid-Atlantic United States under the Roses, Roses Express, Maxway, Bill's Dollar Stores, Super 10, Super Dollar, and Bargain Town banners.
Variety Wholesalers intends to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand moving forward, and up to two distribution centers. In addition, according to a press release, Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the "go-forward footprint."
Bruce Thorn, Big Lots' CEO, said, "The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team. This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand. We are grateful to our associates nationwide for their grit and resilience throughout this process."
Rick Edwards, Gordon Brothers Retail Partners' Head of North America Retail, said, "We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue to serve customers with extreme bargains and an outstanding shopping experience."
Lisa Seigies, Variety Wholesalers' President and CEO, said, "We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores. We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead."
The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.
Court filings and other information related to the proceedings, including how to file a proof of claim, are available on a separate website administrated by the company's claims agent, Kroll Restructuring Administration LLC, by calling toll-free at (844) 217-1398 (or +1 (646) 809-2073 for calls originating outside of the U.S. or Canada), or by sending an email to [email protected].
Advisors
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 to Gordon Brothers, and Gordon Brothers' Real Estate Services team will be handling real estate matters for the Buyer, including Variety Wholesalers.
Cozen O'Connor is serving as legal counsel to Variety Wholesalers.
