Big Lots Faces Challenges with New Rescue Deal Amid Creditor Pushback
Big Lots’ latest plan to avoid closure is in jeopardy due to creditor concerns over potential losses in the bankruptcy process
Big Lots, Bankruptcy, Gordon Brothers, Delaware, Retail
Wilmington: So, Big Lots is in a bit of a pickle right now. They’ve got this new plan to keep their stores open, but some creditors are not happy about it. They’re worried they might lose money if the retailer goes under.
Recently, Big Lots announced a deal to sell the business to Gordon Brothers Retail Partners. This plan includes moving 200 to 400 stores over to Variety Wholesalers. Sounds like a big shuffle, right?
But during a court hearing, some landlords and vendors said they didn’t have enough time to look over the deal. They’re not too sure it’s going to work out either. Big Lots’ lawyer, Adam Shpeen, insists this is their best shot to avoid closing up shop completely.
He mentioned that they need to wrap this up quickly, or they might have to liquidate everything. That’s a scary thought for a lot of folks who rely on those jobs.
Judge J. Kate Stickles was supposed to make a decision on the deal, but now it’s been pushed back because of all the pushback from creditors. She called it an unfortunate situation and urged everyone to keep talking.
Big Lots had over 1,300 stores when they filed for Chapter 11 back in September, and now they’re holding going-out-of-business sales at most locations. It’s a tough time for them, especially after a previous deal with Nexus Capital fell through.
In the end, the Gordon Brothers deal would help pay off some of Big Lots’ debts, but it’s all up in the air right now. Let’s hope they can figure something out soon.