BIG.N News & Events

Weakness in shares of bargain store chain Ollie's (OLLI) may be related to Big Lots (BIG) having announced that it has agreed to a sale transaction with Gordon Brothers Retail Partners that enables the transfer of Big Lots assets, including stores, distribution centers, and intellectual property, to other retailers and companies, including Variety Wholesalers.

Big Lots announced that it has agreed to a sale transaction with Gordon Brothers Retail Partners that enables the transfer of Big Lots assets, including stores, distribution centers, and intellectual property, to other retailers and companies, including Variety Wholesalers, 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, 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' President and Chief Executive Officer, 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." The agreement is subject to approval by the Bankruptcy Court and other customary closing conditions.

Big Lots 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, it stated. "In parallel with these efforts, the company is preparing to commence going out of business 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," the company added. 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."