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Suzanne Blake

By Suzanne Blake

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Big Lots has announced nearly 300 new store closures as the discount furniture store continues to face bankruptcy.

Why It Matters

The retail chain 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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Big Lots' financial woes reflect a larger crisis occurring in the industry, as 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.

Retail chains have faced economic turbulence since the coronavirus pandemic, as many consumers have turned toward online shopping over brick-and-mortar stores.

Is Big Lots Going Out of Business?

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

The furniture chain was also suffering from a sales drop of as much as $114.5 million from 2023 to 2024.

Due to this financial strife, Big Lots said it would close 545 of 1,389 locations by January of this year

"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," CEO Bruce Thorn said in a statement at the time.

While more than 400 stores have shuttered, the chain decided it needed to close even more locations after Nexus Capital Management LP dropped out of its deal with Big Lots to acquire the company.

As of now, Big Lots has entered a deal with Gordon Brothers Retail Partners LLC, anticipating around 300 more store closures are on the way this year.

The new agreement allows Variety Wholesalers to acquire between 200 and 400 Big Lots locations instead of the retailer closing all 963 remaining stores.

Big Lots

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Gordon Brothers Announce Which Big Lots Stores Are Closing

Gordon Brothers has announced the full list of Big Lots closures for this year:

Alabama:

Arizona:

Arkansas:

California:

Colorado:

Connecticut:

Florida:

Georgia:

Illinois:

Indiana:

Kansas:

Kentucky:

Louisiana:

Maine:

Maryland:

Massachusetts:

Michigan:

Minnesota:

Missouri:

Montana:

New Hampshire:

Nevada:

New Jersey:

New York:

North Carolina:

Ohio:

Oregon:

Pennsylvania:

South Carolina:

South Dakota:

Tennessee:

Utah:

Vermont:

Virginia:

Washington:

Wisconsin:

Wyoming:

To take over the lease, businesses will have to send in their offers by January 24.

Where is Big Lots Closing the Most Stores?

Big Lots is closing the highest number of stores in California, where 75 locations are set to be shuttered. Florida is also seeing a high number of closures, with 26 storefronts saying goodbye to customers.

Arizona and Washington are closing 17 and 18 stores respectively, and many other states will see just a couple shutter in the weeks ahead.

What People Are Saying

Bruce Thorn, Big Lots' president and CEO, said in a statement: "The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots that reflects the tireless work and collective effort of our team. This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand."

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The closures of many Big Lots stores nationwide are primarily due to declining sales, more competition from other national retailers both in-person and online, and ongoing supply chain issues that have taken a bite out of their profits. The company's bankruptcy is a sign of the times, representing a change not just in consumers' habits, but also changing macro-economic trends in the pricing of so many items Big Lots stocks and the profit margins."

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "Declining sales and an inability to adjust to shifting consumer spending habits played a key role. The company's discount model relies on strong volume, but inflation made it harder for its customers to keep spending."

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."

What Happens Next

Frequent Big Lots shoppers should expect many of their local stores to disappear in 2025, and the chain is likely to change its profit strategy in the coming months.

"For their customers, the unfortunate reality is they can expect fewer locations, but the company is looking to pivot to change strategy and make better use of its remaining locations," Beene said.

Lease-backed financing and subleasing unused storefronts to other retailers may become a key part of Big Lots' financing, Thompson added.

"These steps could help stabilize operations, but whether Big Lots can successfully turn around remains to be seen," Thompson said.

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