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Suzanne Blake

By Suzanne Blake

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Big Lots has placed hundreds of stores for sale after filing for Chapter 11 bankruptcy late last year.

However, many may remain open as Variety Wholesalers is planning to take over 200 stores and continue their operations as Big Lots. Experts told Newsweek what to expect from the discount store in the future.

Why It Matters

Big Lots originally filed for bankruptcy in September and has been in the process of getting rid of its underperforming stores since then.

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The retail chain's financial struggles may reflect widespread economic turbulence in the industry. Currently, almost 25 percent of America's largest shopping malls are anticipated to close by 2027, according to research from real estate services firm Green Street Advisors.

During the coronavirus pandemic, many consumers shifted their behavior to favor online shopping over brick-and-mortar stores.

Big Lots

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What To Know

Big Lots is seeking help from Gordon Brothers Retail Partners, a Boston-based asset liquidation firm, during the bankruptcy process.

So far, 200 locations were designated as the stores being taken over by Variety Wholesalers. This includes locations in North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia, Alabama, Florida, Georgia, Indiana, Kentucky, Louisiana, Michigan, Mississippi and West Virginia.

Variety Wholesalers also owns Roses Discount stores, Roses Express, Maxway, Bill's Dollar Stores and Bargain Town.

Any objections to Variety Wholesalers taking over the locations could be filed with the U.S. Bankruptcy Court before 4 p.m. on February 18.

When did Big Lots File For Bankruptcy?

The discount furniture retailer filed for bankruptcy in September due to financial difficulties.

Originally, Big Lots said it would be closing 545 of 1,389 locations by January, but since then, more stores have been placed on the chopping block.

Newsweek reached out to Big Lots for comment via email.

Big Lots Locations Expected to Stay Open

Of nearly 900 remaining stores, Big Lots said these stores will be taken over by Variety Wholesalers and stay in operation:

Alabama

Florida

Georgia

Indiana

Kentucky

Louisiana

Michigan

Mississippi

North Carolina

Ohio

Pennsylvania

South Carolina

Tennessee

Virginia

West Virginia

Why is Big Lots going out of business?

Shortly after filing for bankruptcy, Big Lots revealed it owed $3.1 billion to between 5,000 and 10,000 creditors in court documents.

The chain had also sustained a sales drop of as much as $114.5 million from 2023 to 2024.

What People Are Saying

Big Lots CEO Bruce Thorn said in a statement previously: "Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers."

R.J. Hottovy, Head of Analytical Research at Placer.ai, told Newsweek: "Big Lots' challenges stem from a combination of consumer behavior shifts, economic pressures, and increased competition. The retailer's product mix leans heavily toward furniture and home décor—categories that surged in demand during the early pandemic but have softened in recent years. Rising costs for lower-income consumers, including food, rent, and healthcare, have further impacted demand for Big Lots' offerings. Additionally, the company has faced growing competition from Walmart and other mass merchants that rolled back prices in the fall to attract shoppers."

Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "This deal with Gordon Brothers and Variety Wholesalers, they hope it's their lifeline. Variety will operate the acquired stores under the Big Lots brand, while allowing Big Lots to shed underperforming locations and focus on profitable stores. They're essentially getting back to basics. Returning to their extreme bargain roots that worked well before they lost their way."

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "While competition, declining sales, and broader economic conditions—such as rising interest rates and shrinking margins—are often cited as reasons for the company's struggles, there's a common thread among many retail closures: private equity. During the era of low interest rates, private equity firms secured billions in cheap capital to invest. Now, as rates rise, we're seeing a wave of retail closures, often following a familiar pattern: either a sale-leaseback of real estate holdings or a leveraged buyout that saddles the business with high management fees and unsustainable debt."

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "This process is fairly common for retailers that file for bankruptcy. While customers may view this financial action as a sign the company is going out of business, that's not always the reality. In fact, in many situations, the retailer is filing for bankruptcy to restructure and downsize in an attempt to stabilize their operations and return to profitability."

What Happens Next

Moving forward in 2025, Big Lots shoppers should expect a more "focused" experience, Ryan said.

"Those still shopping at Big Lots should see better merchandise selection and improved pricing strategies as they refocus on what made them successful in the first place: being the go-to destination for extreme bargains," Ryan said.

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