Big Lots just received a last-minute lifeline

• Big Lots has reached a deal that would preserve between 200 and 400 stores across the US.
• The agreement with Gordon Brothers Retail Partners follows the collapse of an earlier rescue plan.
• If approved, the company says the $496 million deal would preserve thousands of jobs.

The Big Lots story isn't over yet.

The discount chain said Friday that it had reached a deal with Gordon Brothers Retail Partners that would preserve at least 200 stores across the US, with the possibility of raising that number to 400 locations.

If the deal is approved, the remaining Big Lots stores and brand would be transferred to Variety Wholesalers, a privately held owner of more than 400 discount stores across the southeast and mid-Atlantic.

"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 statement.

The agreement follows the collapse of an earlier rescue plan with Nexus Capital Management that Big Lots said became unviable after Nexus required additional equity financing and $20 million of additional savings.

The new $496 million deal includes $304 million of debt payments and $17 million for unpaid rent. The company said the agreement would preserve thousands of jobs at stores, distribution centers, and certain corporate roles.

Several creditors have filed objections to various terms of the deal, which was presented in US bankruptcy court on Monday.

"There is no alternative to the Sale other than a liquidation, and the Debtors' estates and their creditors are better off if the Sale were to close," the company said in its motion proposing the deal.

As it holds going-out-of-business sales, the company said it has stopped ordering any future inventory and that "with each passing day the value of these estates decreases."

With this latest lifeline, there's still a chance your local Big Lots will keep the lights on after all.