Discount retailer Big Lots has found a last-minute savior.
The company said Friday that it has agreed to a deal with Gordon Brothers Retail Partners that will enable the transfer of assets — including stores, distribution centers and intellectual property — to other operators.
Court documents show Gordon Brothers may pay up to $495 million on the deal to cover debt payoffs, administrative and winddown costs and escrow funds as part of the asset purchase agreement.
Big Lots filed for bankruptcy in September.
Variety Wholesalers, which owns more than 400 retail stores, will acquire between 200 and 400 Big Lots locations, which it will operate using the Big Lots name. The company may also acquire up to two distribution centers and retain the right to employ Big Lots retail and corporate employees.
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand,” CEO Bruce Thorn said in a press release.
The deal follows a failed potential sale to private-equity firm Nexus Capital Management. The deal fell apart after an appraisal of the company’s inventory was lower than expected, Bloomberg reported.
The purchase agreement is subject to approval from the bankruptcy court, where Big Lots will next appear on Monday.
Former sporting equipment retailer Mitchell Modell said earlier this week that he was preparing a bid for Big Lots Stores and Party City.