Big Lots plans comeback after bankruptcy, stores saved

Big Lots is hinting at a comeback after facing serious financial troubles. The retailer filed for Chapter 11 bankruptcy in September 2024 and had about $3 billion in debt. Its sales dropped by $114.5 million from early 2023 to 2024, mainly due to high interest rates, inflation, and changing shopping habits. Initially, Big Lots planned to close over 500 of its stores and restructure its operations. However, a deal with Nexus Capital Management collapsed in December. Consequently, Big Lots began closing all its remaining 963 stores. Things began to turn around when Gordon Brothers Retail Partners stepped in. They agreed to help Big Lots by transferring its stores, distribution centers, and other assets to various retailers, including Variety Wholesalers Inc. This deal will keep 200 to 400 Big Lots stores active under the same brand. Recently, Big Lots teased customers with a Facebook post announcing "BIG NEWS!" about a new version of the store coming soon, promising fresh products and low prices. The post encouraged customers to watch for updates about this comeback. Customer reactions have been mixed. Some are excited, while others doubt whether the new Big Lots will be successful. CEO Bruce Thorne expressed optimism about the new direction and the potential to preserve jobs and keep the brand going. Other retailers are also navigating bankruptcy challenges this month, including Forever 21 and On the Border Mexican Grill.