To close out 2024, Big Lots got the seal of approval that would save the brand and keep hundreds of stores open.
On Tuesday, bankruptcy judge Kate Stickles approved a last-minute sale of 200 to 400 stores to discount retailer chain Variety Wholesalers, Inc., which said it would continue to operate the locations under the Big Lots brand name. According to Big Lots, the sale would preserve 5,000 to 10,000 jobs.
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Either one or both of Big Lots’ remaining distribution centers in Alabama and Pennsylvania are expected to be included in the sale.
Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support the go-forward footprint, the companies said on Dec. 27 ahead of the bankruptcy court’s approval.
Sourcing Journal reached out to representatives from Big Lots.
However, there have been casualties across the presently liquidating company throughout its bankruptcy proceedings.
Big Lots began laying off 555 employees at its Columbus, Ohio headquarters starting Dec. 29, with CEO and president Bruce Thorn being among the cuts. It is unclear if Thorn will have a new role with Big Lots under Variety Wholesalers as part of the go-forward plan.
Three executive vice presidents and eight senior vice presidents are impacted by the layoffs, including the chief stores, value sourcing, supply chain and financial officers. Another 27 vice presidents have been impacted by the layoffs, which will continue through April 15.
The retailer filed a Worker Adjustment and Retraining Notification (WARN) Act notice on Dec. 19 outlining the permanent terminations.
The job cuts haven’t just been prepped at the company’s HQ. Big Lots is laying off nearly 1,000 workers across the two remaining distribution centers that are up for sale.
In two separate WARN notices filed on Dec. 24, the retailer said it planned 491 layoffs at its Montgomery, Ala. distribution center, as well as 505 more in Tremont, Pa.
Both sets of layoffs will begin Jan. 6, with the Pennsylvania layoffs anticipated to continue through March 31. The Alabama WARN notice does not share a completion date for the Montgomery job cuts.
Neither of the facilities are slated for closure.
As Big Lots’ fortunes continued to go south in 2024, the company closed hundreds of stores throughout the year, and already shuttered two other distribution centers in Columbus and Apple Valey, Calif. on Oct. 31.