Ollie’s Bargain Outlet Acquires 40 Former Big Lots Stores from Gordon Brothers
Rhea-AI Summary
Ollie's Bargain Outlet (NASDAQ: OLLI) has announced the acquisition of 40 former Big Lots store leases from Gordon Brothers, pending final bankruptcy court approval and customary closing conditions. This brings the total number of acquired Big Lots locations to 63.
According to President and CEO Eric van der Valk, these locations align with the company's business and growth strategy, featuring optimal size, favorable lease terms, and presence in existing and adjacent trade areas serving value-conscious consumers.
The company plans to adjust its existing new store opening schedule to prioritize the acquired locations based on operational and financial considerations. With this acquisition and previous investments, Ollie's expects to exceed its 10% annual growth target, projecting approximately 75 new store openings in 2025.
Positive
- Acquisition of 40 additional store locations expanding retail footprint
- Total of 63 Big Lots locations acquired to date
- Accelerated growth projection of 75 new stores in 2025
- Exceeding 10% annual growth target
- Strategic locations with favorable lease terms
Negative
- Acquisition subject to bankruptcy court approval
- Potential operational challenges in managing accelerated store openings
News Market Reaction
On the day this news was published, OLLI gained 4.41%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HARRISBURG, Pa., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced the acquisition of 40 former Big Lots store leases from Gordon Brothers. The acquisition of the additional store leases is subject to final bankruptcy court approval and customary closing conditions. Including the 40 additional Big Lots locations, the Company has acquired a total of 63 former Big Lots store leases to date.
Eric van der Valk, President and Chief Executive Officer of Ollie’s stated, “We are excited to announce the acquisition of an additional 40 former Big Lot store locations. Everything about these stores lines up well with our business and growth strategy. These locations are the right size, come with favorable lease terms, are located in existing and adjacent trade areas, and have long serviced value conscious consumers.”
Mr. van der Valk continued, “Similar to what we have done with previous store acquisitions over the past year, we will adjust our existing new store openings and prioritize the opening of the acquired stores in a manner that makes the most operational and financial sense. This acquisition, along with the investments we have made to position the company for sustainable long-term growth provides us with the opportunity to accelerate new store openings in 2025 above our
About Ollie’s
We are America’s largest retailer of closeout merchandise and excess inventory, offering Real Brands and Real Bargain prices®! We offer extreme value on brand name products in a variety of departments, including housewares, food, books and stationery, bed and bath, floor coverings, toys, health and beauty aids, and more. We currently operate 568 stores in 31 states and growing! For more information, visit http://www.ollies.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections, the outlook for the Company’s future business, prospects, financial performance, including our fiscal 2024 business outlook or financial guidance, and industry outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, capital market conditions, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including, but not limited to, supply chain challenges, legislation, national trade policy, and the following: our failure to adequately procure and manage our inventory, anticipate consumer demand or achieve favorable product margins; changes in consumer confidence and spending; risks associated with our status as a “brick and mortar” only retailer; risks associated with intense competition; our failure to open new profitable stores, or successfully enter new markets, on a timely basis or at all; fluctuations in comparable store sales and results of operations, including on a quarterly basis; factors such as inflation, cost increases and energy prices; the risks associated with doing business with international manufacturers and suppliers including, but not limited to, potential increases in tariffs on imported goods; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to properly hire and to retain key personnel and other qualified personnel; changes in market levels of wages; risks associated with cybersecurity events and the timely and effective deployment, protection and defense of computer networks and other electronic systems, including email; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop, open, and operate, or the loss of, or disruption or interruption in the operations of, any of our centralized distribution centers; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for adverse outcomes; our inability to successfully develop or implement our marketing, advertising and promotional efforts; the seasonal nature of our business; risks associated with natural disasters, whether or not caused by climate change; outbreak of viruses, global health epidemics, pandemics, or widespread illness; changes in government regulations, procedures and requirements; and our ability to service indebtedness and to comply with our financial covenants together with each of the other factors set forth under the heading “Risk Factors” in our filings with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Ollie’s undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.
Investor Contact:
John Rouleau
Managing Director of Corporate Communication & Business Development
JRouleau@ollies.us
Media Contact:
Tom Kuypers
Senior Vice President – Marketing & Advertising
tkuypers@ollies.us
FAQ
How many Big Lots store leases did Ollie's (OLLI) acquire in the latest deal?
What is Ollie's (OLLI) total store acquisition count from Big Lots to date?
How many new stores does Ollie's (OLLI) plan to open in 2025?
What are the key characteristics of the acquired Big Lots locations for Ollie's (OLLI)?
