Big Lots has been in the spotlight recently, particularly for its financial struggles, leading many to ask: Is Big Lots closing stores permanently? The company, which filed for bankruptcy in September, has been working through a major restructuring process. However, a new deal has provided some much-needed relief. A transaction with Gordon Brothers, a well-known asset liquidation firm, will ensure that up to 400 Big Lots stores remain open under new ownership. This move will preserve part of Big Lots’ retail presence and protect hundreds of jobs that might have otherwise been lost.
The Big Lots Bankruptcy and Store Closures
In September 2024, Big Lots made headlines when it filed for bankruptcy protection. Amidst the financial turmoil, the company had announced plans to close a significant number of stores as part of its restructuring process. At the time, Big Lots was on track to close over 340 of its more than 1,300 stores across the United States. These closures were seen as a necessary step to streamline operations and cope with the challenging retail environment.
Many consumers and employees were left wondering: How many Big Lots stores will close? However, the recent agreement with Gordon Brothers and Variety Wholesalers has given the company a lifeline and allowed it to keep a large number of locations operational.
The Deal That Saves Big Lots Locations
Thanks to a deal with Gordon Brothers Retail Partners, Big Lots will transfer between 200 and 400 stores to Variety Wholesalers, Inc., a discount retailer based in Hendersonville, North Carolina. Variety Wholesalers operates more than 400 locations across the Southeast and Mid-Atlantic regions under various brand names, including Roses, Maxway, Bill’s Dollar Stores, and Bargain Town.
The stores acquired through this deal will continue to operate under the Big Lots name, ensuring that the brand doesn’t disappear entirely. This move allows Variety Wholesalers to strengthen its position in the discount retail market, while Big Lots retains a significant portion of its retail presence. The transaction also includes the transfer of Big Lots’ distribution centers and intellectual property, marking a critical step in preserving jobs and continuity for the company’s employees.
Why the Deal Matters
For Big Lots, the deal with Gordon Brothers and Variety Wholesalers represents a pivotal moment in its bankruptcy process. CEO Bruce Thorn emphasized that the agreement would help preserve jobs, protect the Big Lots brand, and maximize the value of the company’s remaining assets. This is important not only for the company’s employees but also for the thousands of customers who rely on Big Lots for affordable home goods, furniture, and groceries.
In a statement, Thorn noted that the sale would “reflect the tireless work and collective effort of our team.” While Big Lots will still close a portion of its stores as part of the bankruptcy process, the deal means that hundreds of others will remain open, offering stability for workers and customers who might have feared further closures.
What Does This Mean for Big Lots Employees?
One of the biggest concerns when a retailer announces bankruptcy and store closures is the fate of its employees. While Big Lots did announce plans to close some stores earlier in the year, the recent deal with Variety Wholesalers provides a glimmer of hope. The new ownership structure may allow for the rehiring of current Big Lots employees, both at the acquired stores and potentially at one or two of Big Lots’ distribution centers.
This could significantly reduce the number of job losses that might have occurred if Big Lots had gone through with its initial store closure plans. The deal not only secures the future of these locations but also provides continuity for many of the company’s long-standing workers.
Big Lots Store Closures: How Many Will Remain?
Even with this new deal, Big Lots will still be undergoing some significant changes. The company has already begun closing stores as part of its bankruptcy process, and more closures are expected in the near future. As of March 2024, Big Lots had over 1,300 locations across the U.S., but after the bankruptcy process and the transfer of stores to Variety Wholesalers, that number is likely to decrease significantly.
While the exact number of Big Lots stores that will close is still uncertain, the move to transfer up to 400 stores to Variety Wholesalers means that a substantial portion of Big Lots’ locations will continue operating. For those wondering, is Big Lots closing stores near me? the answer will depend on your location and whether it is part of the acquisition by Variety Wholesalers.
The Retail Environment: Challenges and Store Closures
Big Lots is not alone in facing these difficulties. The retail sector has been under increasing pressure in recent years due to changing consumer shopping habits, the rise of e-commerce, and inflationary pressures. Big Lots’ bankruptcy announcement came on the heels of similar news from other retailers, including The Container Store, which filed for bankruptcy protection, and Party City, which also closed many of its locations. These closures reflect broader trends in the retail industry, with many brick-and-mortar stores struggling to stay afloat.
The deal that keeps Big Lots stores open is an outlier in an industry that is increasingly focused on downsizing and restructuring. For Big Lots, the agreement with Variety Wholesalers represents a strategic step toward stabilization and long-term survival, even if it means that fewer locations will operate under the Big Lots name.
What’s Next for Big Lots?
While the closure of some Big Lots stores is inevitable, the new deal offers hope for the future of the retailer. The partnership with Variety Wholesalers provides a solid path forward for the Big Lots brand, allowing the company to maintain a presence in the discount retail space, especially in the Southeast and Mid-Atlantic regions.
The court must still approve the deal, but if everything goes as planned, it could mark the beginning of a new chapter for Big Lots. Whether or not the company will return to the heights it once saw remains to be seen, but for now, Big Lots can breathe a little easier, knowing that up to 400 of its stores will continue to operate, keeping jobs intact and the brand alive.
Conclusion
If you’ve been wondering, Is Big Lots closing stores near me? the answer depends on where you live. Thanks to the recent deal with Variety Wholesalers, up to 400 Big Lots locations will remain open, offering some relief to customers and employees alike. However, Big Lots is still in the process of closing some stores as part of its bankruptcy restructuring. The deal offers a lifeline for the retailer, ensuring the survival of the Big Lots brand for the foreseeable future, despite the tough retail environment.
