Ollie's Bargain Outlet to acquire 40 store leases from struggling Big Lots
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Ollie's Bargain Outlet is acquiring 40 store leases from Big Lots, which continues to maneuver through the Chapter 11 bankruptcy process.
Ollie’s Bargain Outlet Holdings, Inc. announced the acquisitions from Gordon Brothers, a liquidation firm handling the sale of Big Lots locations, on Feb. 27. The Harrisburg, Pennsylvania-based company prefaced that the acquisitions are subject to final bankruptcy court approval and customary closing conditions.
With the addition of the 40 Big Lots locations, Ollie's has now acquired 63 total former leases from the struggling retailer.
“We are excited to announce the acquisition of an additional 40 former Big Lot store locations," Eric van der Valk, president and CEO of Ollie’s, said in a news release. "Everything about these stores lines up well with our business and growth strategy. These locations are the right size, come with favorable lease terms, are located in existing and adjacent trade areas, and have long serviced value conscious consumers.”
USA TODAY contacted Ollie's and Gordon Brothers on Wednesday but has not received a response.
Upon approval from the bankruptcy court, van der Valk said the acquisition of Big Lots stores would impact the chain's plans for new Ollie's store openings in 2025.
"We will adjust our existing new store openings and prioritize the opening of the acquired stores in a manner that makes the most operational and financial sense," van der Valk said.
As of Wednesday, the Ollie's website listed plans for new store openings in March across multiple states: Wisconsin, Vermont, Connecticut, Ohio, Michigan, Oklahoma and Indiana.
The CEO said Ollie's now plans to open about 75 new store locations in 2025 as a result of the transaction.
Ollie's currently operates 568 stores in 31 U.S. states, according to the company.
Gordon Brothers was offering more than 600 Big Lots leases for sale nationwide. The stores were primarily located in shopping centers across 47 U.S. states and ranged in size from 18,963 to 58,433 square feet.
All offers for individual and multiple location purchases were due no later than Feb. 17, according to the Boston-based firm.
When Big Lots filed for bankruptcy in September, the chain was the fourth-largest home goods retailer in the U.S. and had 1,392 stores at the beginning of 2024. That number has dwindled to 366 stores across the country, according to its website. Pennsylvania (32) and North Carolina (49) have the most Big Lots locations still open.
Last month, Gordon Brothers provided a filing to the U.S. Bankruptcy Court for the District of Delaware listing 200 Big Lots locations with leases or contracts designated to be taken over by Variety Wholesalers, a retail company headquartered in Henderson, North Carolina.
Back in December, Variety Wholesalers, Inc. said it would take over 200 to 400 Big Lots stores under a deal with Gordon Brothers Retail Partners. Variety Wholesalers owns more than 400 stores in the Mid-Atlantic and Southeast; among the chains it operates are Roses Discount stores, Roses Express, Maxway, Bill's Dollar Stores and Bargain Town.
Big Lots bankruptcy: See list of locations facing closure
Big Lots locations are currently conducting "going out of business" sales with items throughout the entire store being marked down between 50-80% off, according to the retailer's website.
The sales, which began in December, were initiated in an effort to "protect the value of (Big Lots') estate," according to the company
CEO Bruce Thorn said in December that the closures could be reversed if a company sale was completed, but instead, ultimately all of Big Lots' remaining assets would be liquidated.
“We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process,” Thorn said in the December release.
Contributing: Greta Cross, Mike Snider and Fernando Cervantes Jr., USA TODAY
This article originally appeared on USA TODAY: Ollie's to acquire leases of 40 Big Lots stores amid bankruptcy
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