(Reuters) – Big Lots (NYSE:BIG) said on Friday that it has agreed with Gordon Brothers Retail Partners to sell its stores, distribution centers and intellectual property to retailers, including Variety Wholesalers, in an attempt to maintain its brand and secure some outlets and jobs.
The privately-owned Variety Wholesalers plans to acquire acquire 200 to 400 Big Lot stores, two distribution centers, and would retain the associates, operating under the Big Lots brand, the discount home goods retailer said.
The Columbus (WA:CLC), Ohio-based company, which initiated bankruptcy proceedings under Chapter 11, has plans to shutter about 20% of its around 1,400 outlets across the United States.
In September, the company secured $707.5 million to sustain operations and sell its business to private equity firm Nexus Capital.
“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 Big Lots’ CEO Bruce Thorn.
The retailer, which employs over 30,000 workers, has grappled with successive sales declines in recent quarters, exerting pressure on its balance sheet.