Gordon Brothers, recognized globally for their expertise in asset solutions, played a pivotal role in the recent acquisition of Big Lots Inc., ensuring the continuation of the U.S. discount retail chain’s operations. This strategic move by Gordon Brothers Retail Partners not only preserved the well-known Big Lots brand but also maintained hundreds of stores and prevented significant job losses, showcasing their commitment to providing comprehensive solutions in the retail sector.
The acquisition facilitated by Gordon Brothers retail partners involved the seamless transfer of Big Lots’ key assets, encompassing its extensive network of stores, efficient distribution centers, and valuable intellectual property. This transfer was instrumental in enabling other entities, notably Variety Wholesalers, Inc., to step in and ensure the ongoing operation of a significant portion of the business.
Gordon Brothers’ involvement extended beyond just facilitating the acquisition. Prior to this transaction, they had already demonstrated their support for Big Lots through a $200 million delayed draw term loan, aimed at bolstering the retailer’s turnaround strategy. Furthermore, they provided a $150 million debtor-in-possession term loan during Big Lots’ Chapter 11 bankruptcy proceedings, directly supporting the sale process and highlighting their financial strength as retail partners.
Kyle C. Shonak, Chief Transaction Officer, North America at Gordon Brothers, emphasized the collaborative and effective nature of their approach: “Having established a strong working partnership with Big Lots, we executed seamlessly with all parties to provide the company and its stakeholders a holistic, solutions-oriented sale and avoid a full liquidation.” This quote underscores the proactive and partnership-driven approach that Gordon Brothers retail partners bring to complex business challenges. Shonak further noted, “Throughout the restructuring, our firm not only provided financing, but the guidance, expertise and services needed to develop and lead a multi-faceted solution to avoid layoffs and maximize value,” highlighting the breadth of their service offerings beyond just financial support.
A key outcome of this acquisition, facilitated by Gordon Brothers retail partners, is the acquisition of at least 200 Big Lots stores by Variety Wholesalers. These stores will continue to operate under the familiar Big Lots brand name, retaining existing employees and ensuring business continuity. Variety Wholesalers is also evaluating options for the associated distribution centers, further solidifying the operational stability achieved through this deal. Gordon Brothers will continue to support Variety Wholesalers by providing ongoing real estate services, optimizing the go-forward footprint of the Big Lots brand.
Al Williams, Co-Head of North America Real Estate Services at Gordon Brothers, elaborated on the positive community impact of this deal, stating, “Through our tireless efforts and close collaboration with Variety Wholesalers, we are not only enabling the continued operation of hundreds of Big Lots stores but also helping to keep employees in their jobs.” This statement emphasizes the human element of Gordon Brothers’ work as retail partners, focusing on job preservation and community support. Williams further added, “This collaboration highlights the profound impact Gordon Brothers’ seamlessly integrated services can have on businesses and the communities they serve,” reinforcing the holistic nature of their solutions.
In addition to real estate services, Gordon Brothers retail partners are also providing inventory and brand solutions. They are actively managing the closure of stores not included in the Variety Wholesalers acquisition, ensuring a smooth transition. This comprehensive approach to asset management and brand transition demonstrates the diverse capabilities Gordon Brothers brings to retail partnerships.
Lisa Seigies, President and Chief Executive Officer of Variety Wholesalers, expressed her appreciation for Gordon Brothers’ expertise and partnership. “We greatly benefitted from Gordon Brothers’ partnership, their expertise and all-encompassing, tailor-made solution and look forward to continuing to work with them as part of Big Lots’ transition,” she stated. Seigies further added, “We are thrilled to have reached this agreement and continue on our path forward that allows Big Lots to preserve its legacy and continue to serve customers,” highlighting the successful outcome of this collaboration and the positive future for Big Lots under new ownership, thanks in part to Gordon Brothers retail partners.
About Gordon Brothers
Since 1903, Gordon Brothers has been a leader in maximizing liquidity and asset value, providing businesses with the expertise and capital needed to navigate complex challenges. Their solutions-oriented approach spans asset services, lending, financing, and trading, offering clients strategic insights and resources to optimize asset values across various business cycles. With deep expertise in retail, commercial, industrial, brands, and real estate, Gordon Brothers operates globally from its Boston headquarters and over 30 offices across North America, Europe, the Middle East, Africa, and Asia Pacific.
About Big Lots
Big Lots is a major discount retailer in the U.S., focused on offering extreme value to its customers. The company is committed to delivering bargains on a wide range of home goods, including furniture, décor, and pantry items. Big Lots aims to help customers “Live BIG and Save LOTS” through strategic sourcing of closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation also contributes significantly to communities, having provided over $176 million in philanthropic support for critical needs.
About Variety Wholesalers
Variety Wholesalers, a privately held company based in North Carolina, operates over 400 retail stores primarily in the Southeastern and Mid-Atlantic U.S. under banners like Roses and Maxway. Founded in 1930, the company expanded significantly under the Pope family’s leadership and continues to be a major retail player, employing over 9,000 team members.
