Gordon Brothers, the global asset experts, has completed the purchase of Big Lots and facilitated the U.S. closeout retailer’s going concern sale. 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.
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.
“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,” Kyle C. Shonak, chief transaction officer, North America at Gordon Brothers, said. “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,” Al Williams, co-head of North America real estate services at Gordon Brothers, said. “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,” Lisa Seigies, president and CEO of Variety Wholesalers, said. “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.”
