Big Lots, a popular discount store chain based in Columbus, Ohio, is currently facing tough times. The company recently filed for Chapter 11 bankruptcy protection and announced plans to close more than 550 stores across the U.S. This move is meant to improve its money situation.
Since its founding in 1967, Big Lots has opened about 1,389 stores in 48 states. However, due to financial struggles, the company decided to seek bankruptcy help. By closing stores that are not performing well, Big Lots wants to make its business run more smoothly and save money.
The retailer has made an agreement with a private equity firm called Nexus Capital Management, which plans to buy Big Lots’ assets and help turn the business around. During this process, the company is also asking the court for permission to continue paying its employees and important suppliers.
Big Lots began its store closure plan in July 2023, initially announcing that 35 locations would close. By August, this number increased to 315, and in October, the company mentioned 56 more closures. This means that by early 2025, more than 550 stores will be closed.
Texas will have the most closures, with more than 15 stores shutting down. Other states like California, Ohio, and Washington will also be affected. Some states, such as Idaho and New Mexico, which were not on the initial list, will now also lose at least one store each.
Currently, only six states—Delaware, Mississippi, Nebraska, North Dakota, Rhode Island, and West Virginia—will not have any store closures.
To clear out inventory before the stores close, Big Lots is holding liquidation sales. Shoppers can find significant discounts, encouraging them to visit these locations before they close for good.
Big Lots plans to close an additional 250 stores by January 2025 to improve its financial situation. The company aims to reduce costs and focus on its most profitable markets as it works to recover from bankruptcy.
While Big Lots is working to recover, the future is unclear for many employees and customers. How well the company can follow its plans and make needed changes will determine if it can survive in the tough retail market.