Carl’s Place, NY: The Big Lot store at Carl’s Place on July 23, 2024 in New York.
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A bankruptcy judge on Tuesday approved a last-minute sale of retailer Big Lot that will keep 200 to 400 stores open under new ownership.
U.S. Bankruptcy Judge Kate Stickles approved the sale during a court hearing in Wilmington, Del., saying the deal was Big Lots’ best option after a previous sale agreement collapsed. best choice.
Big Lot filed for bankruptcy protection in September, seeking sell its business Private equity firm Nexus Capital. But the deal fell apart earlier this month, causing Big Lot to begin halting sales at its roughly 900 remaining stores in preparation for the company’s possible closure.
large batch Alternate transaction scheduled After the Christmas holiday, the company said it plans to sell its stores, distribution centers and intellectual property rights in partnership with investment firm Gordon Brothers Retail Partners. As part of the deal, privately held retailer Variety Wholesalers agreed to acquire 200 to 400 Big Lot stores.
Big Lot said the sale would preserve 5,000 to 10,000 jobs and keep the company’s brand alive.
But the downsized deal won’t provide enough funds to fully repay Big Lot’s suppliers, such as mattress makers Tempur Sealy and Serta Simmons, who continued to sell goods to Big Lot after it filed for bankruptcy.
Many of those suppliers opposed the sale, saying the Gordon brothers should not be allowed to take Big Lot’s assets if they were unable to pay the company’s suppliers.
Serta’s attorney, Beth Rogers, said Tuesday that Big Lot continued to order furniture and other inventory even after realizing it didn’t have enough funds to pay for it, accruing $250 million in new debt that would be covered under the revised bill. Debts may not be repaid.
When Big Lot filed for bankruptcy, it was the fourth-largest home furnishings retailer in the United States, with 1,300 stores, 2023 revenue of $4.7 billion and more than 27,000 employees. The company has struggled with declining sales over the past few quarters, putting pressure on a balance sheet that already contained $556.1 million in debt, court documents show.
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