CNN
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Big Lots, the discount chain that filed for bankruptcy in September, said Friday that it had agreed to a sales transaction with an investment firm that will allow hundreds of stores to stay open by transferring their ownership to other retailers and companies.

The Columbus, Ohio-based company recently announced it was preparing to close its remaining 963 locations after a failed takeover by private equity firm Nexus Capital Management. Big Lots’ new deal is with Gordon Brothers Retail Partners, which will facilitate the transfer of its brand, stores and distribution centers.

According to Big Lots’ press release, Variety Wholesalers, which owns more than 400 retail stores including Bargain Town, Bill’s Dollar Stores and Maxway, will acquire between 200 and 400 Big Lots stores and up to two distribution centers.

Big Lots’ new deal could prevent thousands of its employees from being laid off. Variety Wholesalers said it may employ Big Lots employees in its stores and distribution centers, as well as some corporate employees.

“This sale agreement and transfer represents the greatest opportunity to retain jobs, maximize the value of the property and ensure the continuity of the Big Lots brand. We thank our employees across the country for their courage and resilience throughout this process,” said Bruce Thorn, President and CEO of Big Lots.

It’s unclear how many Big Lots employees might stay, but up to 555 of the company’s employees were at risk of losing their jobs, according to a layoff notice. According to another statement from the company, an additional 505 employees in Pennsylvania were at risk as of January 6th.

A spokesman for Big Lots told CNN on Saturday that it could not provide further details about the deal.

Big Lots is among many big-name retailers filing for bankruptcy in 2024 as consumers curb spending. Last week, Party City announced it had filed for bankruptcy protection and would close all of its more than 800 stores.

Retail chains cite high inflation and high interest rates as the reason for weak sales. Meanwhile, consumers have prioritized lower costs, a key reason bargain stores have struggled while Walmart and Amazon have thrived.