The discount retail chain Big Lots, which entered bankruptcy protection in September, has successfully struck a deal that will ensure the continuation of many of its stores and distribution centers.

On Friday, Big Lots announced its agreement to be sold to Gordon Brothers Retail Partners, a firm known for its work with distressed businesses. Gordon Brothers plans to facilitate the transfer of Big Lots’ retail outlets, distribution centers, and other assets to various retail entities.

Variety Wholesalers Inc., which operates over 400 discount stores throughout the Southeastern and Mid-Atlantic regions of the United States, intends to take over between 200 and 400 Big Lots locations, maintaining the Big Lots brand. Additionally, Variety Wholesalers is looking to acquire up to two of Big Lots’ distribution centers.

Bruce Thorn, the President and CEO of Big Lots, emphasized the positive aspects of this agreement, stating, “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.” He also expressed gratitude to the company’s employees for their perseverance during these tough times.

Big Lots, headquartered in Columbus, Ohio, specializes in selling furniture, home decor, and various other consumer goods. Upon its bankruptcy filing in September, the company cited the impact of inflation and elevated interest rates, which led to a decrease in consumer spending on home and seasonal products—two key categories for its revenue.

Initially, Big Lots had intended to sell its business operations and assets to private equity firm Nexus Capital Management. However, on December 20, it was reported that the agreement with Nexus fell through. Following this, Big Lots collaborated with Gordon Brothers to initiate going-out-of-business sales across its 869 locations across the U.S.