Big Lots Reaches Deal With Gordon Brothers: Retail Sentiment Brightens

synopsis

Troubled retailer Big Lots Inc. ($BIGGQ) has struck a deal with Gordon Brothers Retail Partners LLC, to sell its assets, including stores, distribution centers, and intellectual property, lifting retail sentiment.

The agreement is subject to approval by the bankruptcy court and other customary closing conditions, Big Lots said in a statement.

Gordon Brothers, which invests in distressed companies, will sell the assets to other retailers, including Variety Wholesalers Inc., which owns more than 400 retail stores in the Southeast and Mid-Atlantic U.S. and will acquire between 200 and 400 Big Lots stores and up to two distribution centers., Big Lots said in a statement.

Variety intends to operate them under the Big Lots brand and may employ Big Lots associates, according to the statement.

“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,” Bruce Thorn, Big Lots' president and CEO, said. "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."

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a week ago. Message volumes increased to the ‘high’ zone from ‘low’.

BIGGQ sentiment meter and message volumes on Dec 30

Ohio-based Big Lots is a discount retailer of home decor items. CBS News reported that the company filed for bankruptcy in September after its sales fell due to high interest rates and inflation.

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