Grocery Outlet is subleasing its Brawley, California, location following a company-wide plan to close underperforming stores, according to documents published by the discount grocer and reported by the Imperial Valley Press. The 16,000-square-foot space is being marketed for sublease through Gordon Brothers, a global asset and real estate consulting firm.
The closure of the Brawley store is part of a broader “Plan of Optimization” intended to improve operational execution and cash flow, Grocery Outlet Holding Corp. Stated. The company reported a net loss of $218.2 million during the fourth quarter of 2025, prompting the strategic review of its store portfolio. Thirty-six locations identified as underperforming are slated for closure nationwide.
“We are closing underperforming stores, redesigning our strategy for novel store growth, and reallocating resources to strengthen operating results,” said Jason Potter, President and CEO of Grocery Outlet, in a statement. Potter attributed recent challenges to increased consumer pressure, delays in federal funding for programs like SNAP, and a more competitive promotional environment.
Gordon Brothers is playing a significant role in mitigating the impact of store closures for other retailers as well. In January 2025, the firm completed a deal with Variety Wholesalers Inc. To acquire assets, stores, and distribution centers from Huge Lots, Inc., which was undergoing bankruptcy proceedings. This acquisition saved between 200 and 400 Big Lots stores from complete closure, according to a report in Yahoo Finance and My Total Retail. Gordon Brothers also acquired assets from Big Lots in December 2024, a transaction advised by Davis Polk & Wardwell LLP and Guggenheim Securities, LLC.
Gordon Brothers maintains a network of over 30 offices globally, including locations throughout the United States, Canada, Europe, the Middle East, Africa, and Asia Pacific. The firm’s involvement in both the Grocery Outlet and Big Lots situations highlights its increasing role in retail restructuring and asset disposition. The firm has offices in multiple US states, including California, where the Brawley Grocery Outlet is located.
The future of the Brawley location remains uncertain as Gordon Brothers seeks a subtenant. Grocery Outlet’s broader restructuring plan and the ongoing involvement of Gordon Brothers suggest continued volatility in the discount retail sector.
