Ohio-based Big Lots announced it filed for Chapter 11 bankruptcy earlier this year, citing economic pressures. The company tried to sell its business to Nexus Capital Management but failed to strike a deal. On Dec. 27, Big Lots announced a sales transaction with Gordon Brothers Retail Partners.

As part of the agreement, North Carolina-based Variety Wholesalers will acquire around 200 to 400 Big Lots stores "which it plans to operate under the Big Lots brand."

Variety, which owns more than 400 retail stores in the Southeast and Mid-Atlantic United States, may also "employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates."

Bruce Thorn, chief executive officer of Big Lots, said the sale to Gordon Brothers and transfer to Variety is a "favorable and significant achievement."

"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 said.

The agreement now needs to be approved by the bankruptcy court and must undergo other closing conditions.

Big Lots operates more than 1,400 stores across 48 states in the United States. While filing for bankruptcy, the company cited issues like inflation, saying that rising prices have changed the spending behaviors of customers.

"The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the company's revenue," it said in September.

Big Lots listed assets and liabilities in the range of $1 billion to $10 billion, owing money to 5,001 to 10,000 creditors. The company's shares have crashed by more than 99 percent this year.