Gordon Brothers Completes Big Lots Purchase & Facilitates Going Concern Sale
UPDATE JAN 13, 2025
Gordon Brothers, the global asset experts, has completed the purchase of Big Lots Inc. and facilitated the U.S. closeout retailer’s going concern sale, preserving the brand, keeping hundreds of stores in operation and preventing thousands of layoffs.
More article and pictures below.
The Benton, Arkansas location of Big Lots had signs telling customers the store is closing.
The purchase enables the transfer of Big Lots’ assets, including its stores, distribution centers and intellectual property, to other retailers and companies, including Variety Wholesalers, Inc.
Gordon Brothers had previously agented a $200 million delayed draw term loan providing liquidity in support of the company’s turnaround strategy and a $150 million debtor-in-possession term loan for Big Lots’ Chapter 11 bankruptcy proceedings in support of the sale process.
Big Lots also had issues in Benton, Arkansas 10 years ago. This photo from April 23, 2005 is when Big Lots was at 1716 Military Rd, where Goodwill currently operates. “The Closeout Store” closed out its location just months after this picture was taken. Photo by Ian Russell.
“Having established a strong working partnership with Big Lots, we executed seamlessly with all parties to provide the company and its stakeholders a holistic, solutions-oriented sale and avoid a full liquidation,” said Kyle C. Shonak, Chief Transaction Officer, North America at Gordon Brothers. “Throughout the restructuring, our firm not only provided financing, but the guidance, expertise and services needed to develop and lead a multi-faceted solution to avoid layoffs and maximize value.”
As part of this sale, Variety Wholesalers will acquire at least 200 stores that will operate under the Big Lots brand name and retain the employees needed for continued operations. The retailer is also exploring options for the associated distribution centers. Gordon Brothers will provide Variety Wholesalers ongoing real estate services to support the Big Lots go-forward footprint.
“Through our tireless efforts and close collaboration with Variety Wholesalers, we are not only enabling the continued operation of hundreds of Big Lots stores but also helping to keep employees in their jobs,” said Al Williams, Co-Head of North America Real Estate Services at Gordon Brothers. “This collaboration highlights the profound impact Gordon Brothers’ seamlessly integrated services can have on businesses and the communities they serve.”
Additionally, the firm is providing inventory and brand solutions while managing the closure of stores that will not go forward to facilitate the transition to Variety Wholesalers.
“We greatly benefitted from Gordon Brothers’ partnership, their expertise and all-encompassing, tailor-made solution and look forward to continuing to work with them as part of Big Lots’ transition,” said Lisa Seigies, President and Chief Executive Officer of Variety Wholesalers. “We are thrilled to have reached this agreement and continue on our path forward that allows Big Lots to preserve its legacy and continue to serve customers.”
To learn more about Gordon Brothers, please visit: https://www.gordonbrothers.com/.
For real estate inquiries, please contact the firm’s Real Estate Services team at [email protected].
Since 1903, Gordon Brothers has maximized liquidity through realizable asset value by providing the people, expertise and capital to solve business challenges. Our solutions-oriented approach across asset services, lending, financing and trading gives clients the insights, strategies and time to optimize asset values throughout the business cycle. We work across the full spectrum of assets globally with deep expertise in retail, commercial, industrial, brands and real estate. We are headquartered in Boston with over 30 offices across North America, Europe, the Middle East and Africa, and Asia Pacific.
Big Lots is one of the nation’s largest closeout retailers focused on extreme value. The Company is dedicated to being the big difference for a better life by delivering bargains to brag about on everything for the home, including furniture, décor, pantry and more. It fulfills its mission to help customers “Live BIG and Save LOTS” with sourcing strategies to grow extreme bargains through closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation, together with the Company’s customers, associates, and vendors, has delivered more than $176 million of philanthropic support to critical needs in hunger, housing, healthcare, and education. For more information, to shop online, or to find a store near you, please visit biglots.com.
Variety is a privately held company based in Henderson, North Carolina that operates more than 400 retail stores in the Southeast and Mid-Atlantic United States under various banners, which include Roses, Roses Express, Maxway, Bill’s Dollar Stores, Super 10, Super Dollar, and Bargain Town.
The company originated in 1930 as a small group of retail stores owned by the Pope family. In 1949, John William Pope took over the family business, and starting in 1970, the company expanded by purchasing a number of other retail chains, including the Roses and Maxway stores. Today, John Pope’s son, Art Pope, serves as its Chairman. Variety employs more than 9,000 team members.
PREVIOUS ARTICLE DEC 20, 2024:
Pictured above, Big Lots at 1426 Military Rd in Benton Arkansas.
The Big Lots corporate offices announced on Thursday, December 19, 2024, they will have “going out of business” sales across all stores in the chain. The retailer has stores in 47 states.
Read more below.
In November, Big Lots attempted to sell to another company, but that deal is apparently ending without a sale, according to a press release from the company. The statement also says they are continuing to look for a buyer, so it’s possible the Big Lots stores would not go out of business.
Big Lots has been in the Chapter 11 bankruptcy process since September 2024, and already closed over 240 stores, according to an article in The Hill. Big Lots had a plan to close about 550 more stores, but halted some of those, then switched the story again on some. Two such stores that were slated for closure but flipped, are in Conway, and Hot Springs, Arkansas.
Scroll down to read the full press release below.
Regardless of the outcome of the business, the sale remains. The release did not give firm dates or details on the sale – only that it would be “in the coming days.”
There are nine locations in Arkansas: Benton, Conway, Fort Smith, Harrison, Hot Springs, Jonesboro, Mountain Home, Paragould and Searcy. Hundreds of stores across the United States are located in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
The full press release:
No Longer Anticipates Closing Previously Announced Sale to Nexus Capital Management
Continues to Pursue a Going Concern Transaction
Preparing to Commence Going Out of Business Sales At Remaining Stores In Parallel With These Efforts
COLUMBUS, Ohio, Dec. 19, 2024 /PRNewswire/ — Big Lots, Inc. (the “Company”) today announced that it does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management, though it continues to work toward completing an alternative going concern transaction with Nexus or another party. The Company’s goal would be to complete a sale by early January.
In parallel with these efforts, the Company is preparing to commence going out of business (“GOB”) sales at all remaining Big Lots store locations in the coming days to protect the value of its estate. The Company believes that the GOB sales will not preclude it from effectuating a going concern transaction.
Bruce Thorn, Big Lots’ President and Chief Executive Officer, said, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
Read more below.
The Company is continuing to serve customers in-store and online, and will provide updates as available.
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, at https://cases.ra.kroll.com/biglots, 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].
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.
Big Lots is one of the nation’s largest closeout retailers focused on extreme value. The Company is dedicated to being the big difference for a better life by delivering bargains to brag about on everything for the home, including furniture, décor, pantry and more. It fulfills its mission to help customers “Live BIG and Save LOTS” with sourcing strategies to grow extreme bargains through closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation, together with the Company’s customers, associates, and vendors, has delivered more than $176 million of philanthropic support to critical needs in hunger, housing, healthcare, and education. For more information, to shop online, or to find a store near you, please visit biglots.com.