(Reuters) – Big Lots (NYSE:) said on Friday it has agreed with Gordon Brothers Retail Partners to sell its stores, distribution centers and intellectual property to retailers including Variety Wholesalers in an effort to preserve its brand and secure some outlets couples and jobs.
Privately held Variety Wholesalers plans to acquire 200 to 400 Big Lot stores and two distribution centers and retain employees operating under the Big Lots brand, the discount home goods retailer said.
The Columbus (WA:), the Ohio-based company, which has entered Chapter 11 bankruptcy proceedings, plans to close approximately 20% of its approximately 1,400 retail locations in the United States.
In September, the company secured $707.5 million to continue operations and sold its operations to private equity firm Nexus Capital.
“This sale agreement and transfer provides the greatest opportunity to retain jobs, maximize value to the estate and ensure the continuity of the Big Lots brand,” said Bruce Thorn, CEO of Big Lots.
The retailer, which employs more than 30,000 people, has suffered successive sales declines in recent quarters, putting pressure on its balance sheet.
