In a development following its nationwide liquidation announcement, Ohio-Based Big Lots, Inc. has struck a deal with Gordon Brothers Retail Partners, LLC, enabling the potential transfer of its assets to other retailers.
The agreement, announced Friday, offers a lifeline for parts of the brand while preserving jobs and mitigating impacts on communities like Schuylkill County where the closure of a major distribution center looms.
This comes on the heels of a WARN notice issued by the Pennsylvania Department of Labor and Industry, confirming the closure of the Big Lots Distribution Center in Tremont. The shutdown, set to affect 505 employees, is slated to begin layoffs on January 6, 2025, with operations ceasing entirely by March 31, 2025.
Prior to the WARN notice, Big Lots Inc. made an announcement on December 19th, 2024 that it would close all of its store locations in 2025.
Under the agreement, Variety Wholesalers, Inc., which operates several retail banners across the Southeast and Mid-Atlantic, plans to acquire between 200 and 400 Big Lots stores and up to two distribution centers. These assets may continue operating under the Big Lots name. It's unclear if the Frackville store is part of that list.
“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,” said Bruce Thorn, Big Lots’ President and CEO.
The development has brought a glimmer of hope for Tremont DC and Frackville store location as Variety Wholesalers has expressed interest in employing associates from acquired stores and distribution centers. However, the specifics regarding the inclusion of Schuylkill County in the acquisition remain unclear.
The closure of the Tremont facility reflects a broader restructuring within Big Lots, which has already begun going-out-of-business (GOB) sales at its stores.
The proposed transfer to Variety Wholesalers hinges on Bankruptcy Court approval and other conditions.