IDAHO FALLS — Big Lots, the discount chain that filed for bankruptcy in September, said Friday that it agreed to a sale transaction with an investment firm, allowing hundreds of stores to stay open by transferring its property to other retailers and companies.
The Columbus, Ohio-based company recently announced it was preparing to close its remaining 963 locations after an acquisition by private-equity firm Nexus Capital Management fell through. Big Lots’ new deal is with Gordon Brothers Retail Partners, which will facilitate the transfer of its brand, stores and distribution centers.
Variety Wholesalers, which owns more than 400 retail stores including Bargain Town, Bill’s Dollar Stores and Maxway, will acquire between 200 and 400 Big Lots stores nationwide and up to two distribution centers, according to Big Lots’ news release.
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Whether Variety Wholesalers will acquire the store at 1530 East 17th Street in Idaho Falls is yet to be determined.
“They haven’t told us yet,” Jacob Ward, one of the store’s managers, tells EastIdahoNews.com. “We’ll find out in the next few days if that’s going to include our store.”
Meanwhile, Ward and his team are planning to close in mid to late February.
Days before Christmas, an EastIdahoNews.com employee reported seeing long lines at the Idaho Falls location. Crowds were looking to take advantage of in-store sales after the chain’s permanent closure was announced.
A massive liquidation sale of all its inventory is now underway. It will include anywhere from 10-25% discounts on all in-store products.
Big Lots in Idaho Falls has been in operation for more than 10 years, Ward says.
The Pocatello store closed shortly after the company filed for bankruptcy. A Boise store closed around that time as well. There are three other Big Lots locations in the Gem State, according to its website, including one in Coeur d’Alene, Lewiston and Meridian.
Big Lots is among the many well-known retailers to file for bankruptcy in 2024 as consumers cut into discretionary spending.
Retail chains have cited high inflation and interest rates for struggling sales. Meanwhile, consumers have sought value over lower costs — a key reason bargain stores have struggled while Walmart and Amazon have thrived.
Big Lots’ new deal could prevent thousands of its employees from being laid off. Variety Wholesalers said it may employ Big Lots staff at the stores and distribution centers, as well as some corporate associates.
“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,” said Bruce Thorn, Big Lots’ president and chief executive.
It’s unclear how many Big Lots employees could remain but up to 555 corporate employees were at risk of losing their job, according to a layoff notice. Another 505 employees were at risk in Pennsylvania beginning January 6, according to another notice filed by the company.
A Big Lots spokesperson told CNN on Saturday that they could not provide additional details about the deal.
Ward is grateful to all the customers who’ve shopped at the Idaho Falls store over the years.
“We appreciate all of our customers who have been loyal to us over the years, who continue to come in here week after week,” says Ward. “This is a really busy store … and we’re sad to leave the community. It’s been a really good run.”
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