Late in 2024, a major American discount retail chain Big Lots filed for Chapter 11 bankruptcy due to negative financial conditions including a $205 million of net loss and significant increase of the long term debt. This is what resulted in Big Lots Store Closings across the United States where there are 494 leases currently up for sale meaning that many of these may be permanent closures. However, Variety Wholesalers plans to purchase and operate about 200 to 400 of the covered locations under the Big Lots name.
Background of Big Lots
Big Lots was created in 1967 under the name Consolidated Stores Corporation, and is currently a major American discount retailer of closeout and overstock merchandise. The company did not offer a wide variety of products like furniture, home decor, groceries and seasonal items but it provided a good range of products like, it was a one stop shop for the budget conscious shoppers.
Big Lots’ growth was impressive, but as large retailers like Walmart and Target, along with online e-commerce platforms continued to grow in competition, incumbent large retailers Big Lots also had an ever growing financial challenge. With this came challenges, and ultimately led to the company’s filing for Chapter 11 bankruptcy late in 2024, forcing Big Lots Store Closings in numerous stores across the country.
What Led to the Decision for Big Lots Store Closings?
Late in 2024, Big Lots had sought Chapter 11 bankruptcy protection as it said it had a net loss of $205 million and more long term debt. A trend of shoppers moving away from products and to online shopping, worse financial situation of the company due to economic factors like high inflation that made purchasing power less effective, and the price of the products being cheaper made its situation worse. As a result, these dynamics resulted in decreasing sales and eventually led to Big Lots Store Closings becoming a premeditated step.
A Timeline of Key Events Leading to Big Lots Store Closings and Restructuring Plans
Big Lots filed for Chapter 11 bankruptcy protection in late 2024 because of financial trouble — including losing $205 million and increasing long-term debt. In the beginning, Nexus Capital Management LP’s affiliate was supposed to buy the company’s assets for $620 million. Nevertheless, in December 2024, the acquisition deal with Nexus fell through, in which case, Big Lots subsequently declared the closure of all 963 remaining stores.
The agreement with Gordon Brothers followed, in which Variety Wholesalers plans to operate up to 400 Big Lots stores and two distribution centers as they were transferred away under the Big Lots brand, saving further Big Lots Store Closings.
Image Credit: GettyimagesWhere Are Big Lots Store Closings Happening?
Carrying the bad news for the retail landscape in California, Big Lots has also announced the shut down of 75 stores, out of which 40% are in Southern California, and 26 stores in Florida. As these Big Lots Store Closings are expected to have a business and employment impact within the local area, competitors may likely benefit from reduced consumer access to Big Lots’ discounted merchandise. The decision marks the most recent challenge brick-and-mortar retailers face in the midst of economic pressure along with changing consumer shopping habits.
Which Locations Are Most Affected by Big Lots Store Closings?
After it had filed for Chapter 11 bankruptcy in late 2024, Big Lots announced that it plans to shutter about 400 stores nationwide by 2025. While there is not a complete list of where they’re going to be closing Big Lots Store Closings, given how many Big Lots Store Closings are being planned in California and Florida, it is obvious that extensive amounts of them are being closed there. It is recommended to look around Big Lots’ official communications or customer service department in case of store closure near you for specific details.
The Impact of Big Lots Store Closings on Employees and What’s Being Done to Support Them
The closure of all 963 remaining stores and distribution centers by Big Lots following its late 2024 Chapter 11 bankruptcy filing has had an immense effect on employment. Notably, 505 employees at the Tremont, Schuylkill County, Pennsylvania distribution center will be laid off due to the closure, with the process ending by March 31, 2025.
The company has already admitted to the job losses, but has not made public information on severance packages or support for affected employees. There is no further info out from Big Lots regarding the support that it would extend to people sans Big Lots Stores closures.
How Are Customers Reacting to the News of Big Lots Store Closings?
Big Lots bankruptcy filing has left loyal customers of the store disappointed and frustrated after the store announced a closure. Customers are sharing surprise and sadness on social media platforms like Reddit and TikTok, which are filled with discussion and video of customers talking about the shutdowns.
Others had worries on the loss of affordable products, with some even complaining that they were unaware about the Big Lots Store Closings until it’s too late. Taken overall, these reactions provide an insight into the emotional effect that closing these stores is having on Big Lots’ core customer base.
What’s Happening to Big Lots Inventory During Store Closures?
In December 2024, Big Lots started going out of business sales at all its stores, with discounts of up to 25% off the original price on merchandise, and with Christmas and harvest items selling for 50%. All sales are final on these products, these sales are only available in store. They expect to finish the liquidation events by the early January 2025. The company is clearing remaining stock in its inventory as part of ongoing Big Lots Store Closings.
The closure of Big Lots stores marks a significant shift in the retail landscape, highlighting the challenges faced by brick-and-mortar retailers in an evolving market. As the company navigates its bankruptcy proceedings, the broader implications for employees, customers, and communities continue to unfold. How Big Lots emerges from this restructuring will shape its future and potentially redefine its place in the retail sector, mitigating further Big Lots Store Closings in the future.