large Lots reaches deal to keep hundreds of US stores open

The discount chain large Lots, which filed for financial setback protection in September, has reached a deal that will keep hundreds of its stores and distribution centers open.

large Lots said Friday it will be sold to Gordon Brothers Retail Partners, a firm that specializes in distressed companies. Gordon Brothers will then transfer large Lots’ stores, distribution centers and other assets to other retailers.

Variety Wholesalers Inc., which owns more than 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, plans to acquire between 200 and 400 large Lots stores and operate them under the large Lots brand. Variety Wholesalers will also acquire up to two distribution centers.

“This sale agreement and transfer now the strongest chance to preserve jobs, maximize worth for the estate and ensure continuity of the large Lots brand,” large Lots President and CEO Bruce Thorn said in a statement. “We are grateful to our associates nationwide for their grit and resilience throughout this procedure.”

Columbus, Ohio-based large Lots sells furniture, home decor and other items. When it filed for financial setback in September, it said expense boost and high profit rates caused consumers to pull back on their purchases of home and seasonal products, two categories the chain depends on for a significant part of its profits.

At the period, large Lots planned to sell its assets and ongoing business operations to private ownership firm Nexus financing distribution Management.

But on Dec. 20, large Lots said the deal with Nexus didn’t materialize. It then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. locations.