It’s another tough hit for Big Lots shoppers. The discount retailer, already amid Chapter 11 bankruptcy restructuring, has announced it will shutter an additional 19 stores across nine states.
This is just the latest wave in a series of closures aimed at “optimizing” its store footprint as the company works to navigate financial challenges.
Where Are the Closures Happening?
This new round of closures will impact several states, with California, Texas, and Oregon being hit the hardest. Here’s the breakdown:
- California: 5 stores
- Oregon: 3 stores
- Texas: 3 stores
- Additional closures are planned in Arizona, Florida, Georgia, Idaho, Nevada, and Washington.
Stakeholders have until November 23 to object to these closures, but unless there are major changes, these stores will soon be gone from their communities.
What’s Behind the Closures?
Big Lots has been struggling financially for some time. When the company filed for Chapter 11 bankruptcy protection in September, it revealed plans to close over 340 locations to address its mounting debt and declining sales. Since then, more closures have followed, including 50 stores in October and now this additional batch of 19.
The company cited “macroeconomic pressures” like inflation and reduced consumer spending as key reasons for its financial troubles. Big Lots also pointed out that its home product categories—such as furniture, seasonal items, and home goods—have been particularly hard hit.
Despite the closures, Big Lots insists that most of its stores are still profitable. “We are taking every step possible to improve the profitability of all our stores,” the retailer shared in a statement, emphasizing that the closures are necessary to streamline operations and continue serving customers.
Big Lots’ Future Under New Ownership
Part of Big Lots’ restructuring involves a significant change in ownership. Nexus Capital Management LP, a private equity firm, is in the process of acquiring the company. The acquisition is expected to be finalized by late 2024 and includes $707.5 million in financing to help the retailer stabilize.
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While the restructuring aims to give Big Lots a fresh start, the company is still carrying a heavy debt load—approximately $3.1 billion owed to thousands of creditors. Sales figures haven’t been encouraging either. From the first quarter of 2023 to the first quarter of 2024, Big Lots reported a $114.5 million decline in net sales.
What This Means for Shoppers
As of January 2023, Big Lots had over 1,400 stores across 48 states. That number has since dropped to roughly 1,150, and with these new closures, it’s clear the footprint will shrink even further.
For loyal customers, the loss of these locations could mean longer drives to shop in-store or switching to online options. However, Big Lots has pledged to continue paying its employees and critical vendors during the bankruptcy process, ensuring that its remaining stores and operations stay afloat.
A Tough Time for Retail
Big Lots isn’t alone in facing these struggles. The pandemic, inflation, and changing consumer habits have left a lasting impact on the retail industry. Other household names like Sears and a major furniture chain with over 300 locations are also feeling the pinch, with some closing all their stores.
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For now, the fate of Big Lots hangs on its ability to adapt and restructure under new ownership. Shoppers, employees, and creditors alike will be watching closely as the company tries to turn things around. If you’re a fan of Big Lots, it might be time to visit your local store—before it’s too late.
