• Big Lots has reached a deal it says would preserve 200 to 400 US stores.
• The agreement with Gordon Brothers Retail Partners followed the collapse of a rescue plan.
• The company says that if approved, the $496 million deal could preserve thousands of jobs.

The Big Lots story isn't over yet.

The discount chain said on Friday that it had reached a deal with Gordon Brothers Retail Partners that would preserve at least 200 stores across the US and possibly as many as 400.

If the deal is approved, the remaining Big Lots stores and brand will 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 followed the collapse of a rescue plan with Nexus Capital Management that Big Lots said became unviable after Nexus required additional equity financing and $20 million in additional savings.

The new $496 million deal includes $304 million in debt payments and $17 million for unpaid rent. The company said the agreement could preserve thousands of jobs at stores and 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.

It said it started going-out-of-business sales and stopped ordering inventory, adding 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.