Big Lots Stock Rises After Regulatory Nod On Keeping Stores Open: Retail's Neutral
Retail sentiment on Stocktwits has remained ‘neutral’
FollowRetailer Big Lots Inc. ($BIGGQ) stock rose on Tuesday after the company received an approval from a Delaware bankruptcy court on keeping 200 of its 400 stores open, but retail sentiment remained neutral.
Last week, Big Lots struck a deal with Gordon Brothers Retail Partners LLC, to sell its assets, including stores, distribution centers, and intellectual property.
According to a Reuters report, U.S. Bankruptcy Judge Kate Stickles said the deal was the best option for Big Lots, following an earlier deal that had fallen through.
Retail sentiment on Stocktwits has remained ‘neutral’ compared a day ago. The sentiment had turned ‘bullish’ when the deal was initially announced.
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 earlier, adding that Variety intends to operate them under the Big Lots brand and may employ Big Lots associates.
Ohio-based Big Lots is a discount retailer of home decor items. The company had filed for bankruptcy protection in September after its sales declined due to high interest rates and inflation.
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