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Big Lots Files for Chapter 11 Bankruptcy, Closes Stores

An empty Big Lots store illustrating the impact of the bankruptcy proceedings.

News Summary

Big Lots has filed for Chapter 11 bankruptcy as of September 2024, leading to the closure of hundreds of stores and the auctioning of leases. Over 460 locations have been sold to various retailers, including Variety Wholesalers, Tractor Supply, and Burlington Stores. Despite the closures, Big Lots plans to retain 200 to 400 stores under its brand. The auction process highlights a significant shift in the retail landscape, with competing retailers eager to fill the gap left by Big Lots’ decline.

Columbus, Ohio – Big Lots has filed for Chapter 11 bankruptcy as of September 2024, resulting in the closure of hundreds of its stores. As part of the bankruptcy proceedings, the retailer is auctioning off leases for its former locations, leading to significant changes in the retail landscape.

During the bankruptcy process, leases for more than 460 stores were sold to Boston-based Gordon Brothers Retail Partners. The liquidation resulted in multiple retailers seizing the opportunity to acquire former Big Lots locations. Among those are Variety Wholesalers, which has purchased 219 Big Lots stores along with two distribution centers. The reopening of these stores has already commenced, with an initial wave of nine locations set to launch on April 10, 2025, and further openings scheduled for May and June 2025.

In addition to Variety Wholesalers, Tractor Supply confirmed its acquisition of 18 leases across 15 states, deeming these locations suitable for serving farmers, ranchers, and pet owners. Meanwhile, Ocean State Job Lot announced plans to purchase 15 Big Lots locations throughout states including New Jersey, Maryland, and Massachusetts. Ollie’s Bargain Outlet has also expressed interest in acquiring 40 former Big Lots stores, while Burlington Stores, Inc. has completed the purchase of 12 locations spread across eight states.

The auction for six specific Big Lots stores located in Central Massachusetts—namely Auburn, Fitchburg, Franklin, Gardner, Milford, and Webster—marked part of the ongoing bankruptcy proceedings. These stores will not be reopening under the Big Lots brand. The financial specifics of the leases sold remain undisclosed, with all offers required to be submitted by January 24, 2025.

Prior to entering bankruptcy, Big Lots reached its peak with approximately 1,400 stores nationwide. The company’s restructuring efforts include plans to maintain between 200 to 400 locations operating under the Big Lots brand, aiming for a potential resurgence in the competitive retail market.

The bankruptcy process initially involved a proposed asset sale to Nexus Capital Management, a deal that ultimately fell through, leading to the collaboration with Gordon Brothers. In addition to store closures, the proceedings have been marked by notable transactions that indicate a shift in retail dynamics as competitors swiftly move to fill the void left by Big Lots.

In summary, Big Lots’ Chapter 11 bankruptcy has triggered the closure of hundreds of stores and the auctioning of leases to competing retailers. As several companies position themselves to capitalize on these former Big Lots locations, both consumers and the broader retail landscape are poised for significant transformations as the new owners execute their expansion plans and strategies.