So it was all over but the crying just a few days ago, as retail chain Big Lots (BIGGQ) was poised to shut down all of its locations. Indeed, many had already closed, and many others were set to start going out of business sales. But some of these locations will apparently continue, noted a Wall Street Journal report, and the market responded in a big way, sending shares blasting up over 165%.
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A new deal between Big Lots and Gordon Brothers Retail Partners will keep the lights on and the cheap furniture and other household goods flowing at at least some Big Lots locations. In fact, the report noted, “hundreds of stores” would remain open, and “thousands of jobs” would continue to mean paychecks for Americans.
Reports noted that the deal would allow Big Lots to continue, but as a very fractured operation. Variety Wholesalers plans to pick up between 200 and 400 Big Lots locations, as well as two of its distribution centers. It will continue to use the Big Lots branding on these stores as well, which will, for all intents and purposes, make them continue to be Big Lots stores. Ultimately, though, Big Lots representatives noted that the deal represents “…the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand.”
Earlier Deal Buckled
A report from Fox Business, meanwhile, noted that Big Lots had set up a deal earlier with Nexus Capital Management, which would have seen the entire chain carry on. But that deal ultimately fell through, the report noted, and that opened up the way for Gordon Brothers to step in.
Ultimately, a report from Big Lots’ president and CEO Bruce Thorn featured him thanking associates for “…their grit and resilience throughout this process,” that would see at least some of them keep their jobs under a different corporate banner. The original plans to close started out modest, with it planning to close between 35 and 40 stores. That number ballooned into hundreds, and many of these stores are already shuttered outright.
Is BIGGQ a Good Buy Right Now?
Turning to Wall Street, no analysts hold a position on BIGGQ stock, so we turn to the last five days of trading instead. Shares are up 184.7% over that interval, thanks largely to the news about a deal that would see at least some stores survive under a different banner. Otherwise, shares were largely flat going into that one surprise news point.
