Hundreds of Big Lots stores previously planned to close will remain open through a new deal involving North Carolina-based Variety Wholesalers.
Variety Wholesalers, which operates brands including Roses and Maxway, will acquire 200-400 Big Lots locations and operate them under the Big Lots name, and up to two distribution centers, as part of a sale agreement with Gordon Brothers Retail Partners, according to a Jan. 3 news release. Variety may also employ Big Lots associates at stores and distribution centers and certain corporate associates.
“We are pleased to close this strategic transaction, which provides a framework to preserve thousands of jobs, maximize value, and maintain the Big Lots brand,” Big Lots President and CEO Bruce Thorn said in the release.
Which Big Lots locations will be saved?
This screen grab of the Big Lots home page, taken Jan. 7, 2025, shows the “All stores closing” message. biglots.com
Big Lots has not announcedwhich locations will be acquired by Variety Wholesalers. The company did not immediately respond to The News & Observer’s request Monday, Jan. 6 for more information.
As of Wednesday, Jan. 8, Big Lots’ website still had an “all stores closing” message.
In-store sales are ongoing, managers at Durham and Cary Big Lots locations confirmed to The N&O over the phone. Elsewhere in the Triangle, Big Lots has stores in Fuquay-Varina, Selma, Knightdale and Wake Forest.
What is Variety Wholesalers?
Headquartered in Henderson, Variety Wholesalers is a privately held retail company that operates brands including Roses, Roses Express, Maxway, Super 10, Bargain Town, Bill’s Dollar Store and Super Dollar.
Hundreds of Big Lots locations, previously expected to close, will be saved through a new sale transaction. Ben Morse The Sun News
Timeline: Big Lots’ bankruptcy and sale
Variety Wholesalers’ acquisition of hundreds of stores marks a reversal for Big Lots. Here’s an overview of what has happened to the company over the past few months:
▪ June 2024: Big Lots wrote in a filing with the Securities and Exchange Commission that it planned to close 35-40 locations in 2024.
▪ September 2024: Big Lots filed for Chapter 11 bankruptcy protection and announced a sale agreement with Nexus Capital Management, attributing its financial challenges to high inflation and interest rates and declining sales of home goods and seasonal products since the COVID-19 pandemic. The California-based investment firm would acquire nearly all of Big Lots’ assets and business operations. Big Lots also said it would close stores and “continue to evaluate and optimize its distribution center model.”
▪ Nov. 22, 2024: The court approved the sale of “substantially all” of Big Lots’ assets and ongoing business operations to Nexus. The sale was expected to close in December.
▪ Dec. 19, 2024: Big Lots announced that the purchase agreement with Nexus Capital Management fell through and that it would begin going-out-of-business sales at all of its remaining stores.
▪ Dec. 27, 2024: Big Lots announced a new sale with Gordon Brothers Retail Partners that would transfer Big Lots assets including stores, distribution centers and intellectual property to companies including North Carolina-based Variety Wholesalers, preserving the brand, hundreds of stores and thousands of jobs. Variety would acquire between 200 and 400 stores.
▪ Jan. 3, 2025: The sale agreement with Gordon Brothers closed. “Variety is thrilled to officially welcome the Big Lots brand and looks forward to operating hundreds of Big Lots store locations. This strategic acquisition allows us to serve additional customers and communities,” Variety Wholesalers president and CEO Lisa Seigies said in a release.
Challenges for large retailers
Two other struggling companies made headlines in December.
Party City announced it was going out of business and closing its approximately 700 stores across the country. Founded nearly 40 years ago, the retailer has five stores in the Triangle, which are holding sales. Party City cited “an immensely challenging environment driven by inflationary pressures on costs and consumer spending” as a reason for the decision to close.
The Container Store filed for Chapter 11 bankruptcy protection but remains open for business. “The Container Store is here to stay,” company president and CEO Satish Malhotra said in a news release. “Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities.”
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Renee Umsted is a service journalism reporter for The News & Observer. She has a degree in journalism from the Bob Schieffer College of Communication at TCU.
