Big Lots

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Big Lots Stores, Inc. (stylized as Big Lots! or BIG Lots!) is an American discount retail chain, specializing in the sale of closeout and overstock merchandise. Founded in 1967 as Consolidated Stores, the chain is headquartered in Columbus, Ohio, and includes over 200 locations across the United States.<ref name=":2">Template:Cite web</ref>

Big Lots filed for Chapter 11 bankruptcy in October 2024, and later in December, the chain announced that it would cease operations, liquidate, and close all remaining stores. Liquidation sales began in December 2024<ref name=":2" /> and all stores were expected to close in 2025.<ref>Template:Cite web</ref> On December 28, 2024, Big Lots reached an agreement with Gordon Brothers Retail Partners to transfer 200–400 stores and one or two distribution centers to Variety Wholesalers, with the remaining stores to be permanently closed.<ref name=":3">Template:Cite web</ref>

History

Early years

The first closeout store, Odd Lots, opened in 1982 in Columbus. Due to a naming conflict with Revco’s Odd Lot Trading Co., the company rebranded its stores outside of Ohio as Big & Small Lots, later consolidating all stores under the Big Lots name.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref name=":1">Template:Cite web</ref><ref>Template:Cite web</ref>

Consolidated Stores was also an investor in the DeLorean Motor Company and took possession of unsold vehicles after the automaker’s 1982 bankruptcy.<ref name=":0">Template:Cite news</ref><ref>Template:Cite web</ref> The company went public in 1985 on the American Stock Exchange and switched to the New York Stock Exchange in 1986 under the symbol CNS.<ref>Template:Cite news</ref>

During the 1990s, Consolidated acquired Toy Liquidators (1994) and KB Toys (1996), which it later sold to Bain Capital in 2000.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite web</ref> In 1998, it purchased MacFrugals (Pic ‘N’ Save) for $995 million in stock.<ref>Template:Cite web</ref><ref name=":1" /> The company was renamed Big Lots, Inc. in 2001, changing its ticker symbol to BLI, and later to BIG in 2006.<ref>Template:Cite news</ref><ref>Template:Cite web</ref><ref>Template:Cite journal</ref> In 2005, it closed 170 stores, including all standalone furniture locations.<ref>Template:Cite web</ref>

Big Lots Wholesale

Big Lots operated a wholesale division for over 34 years through Big Lots Wholesale, Consolidated International, and Wisconsin Toy. The division, which sold merchandise in bulk, was closed at the end of fiscal year 2013.<ref>Template:Cite news</ref>

Big Lots Canada

Template:Main In July 2011, Big Lots acquired Canadian closeout retailer Liquidation World Inc. for $20 million, marking its first expansion outside the United States. The first Canadian store opened in April 2013, with additional locations in Ontario. The company exited Canada in 2014 due to poor sales.<ref>Template:Cite news</ref>

Bankruptcy

Big Lots, formerly the largest close-out retailer in the United States, filed for Chapter 11 bankruptcy in September 2024. The filing followed several years of declining sales, increasing debt, and unsuccessful efforts to revive the business. The case is cited as an example of how economic pressures, changes in consumer behavior, and strategic missteps can contribute to the collapse of a long-standing retail chain.<ref name=":4">Template:Cite web</ref><ref name=":5">Template:Cite web</ref><ref name=":6">Template:Cite web</ref>

Big Lots attributed its bankruptcy to persistent inflation and high interest rates, which it said had reduced spending by its core lower-income customers. However, court documents indicated that the company’s financial problems stemmed from a heavily leveraged balance sheet, including sale-leaseback agreements, rising logistics costs, and nine consecutive quarters of same-store sales declines.<ref name=":4" /><ref name=":5" /><ref name=":6" /> The Chapter 11 filing enabled the company to secure $707.5 million in debtor-in-possession (DIP) financing and propose a stalking-horse sale to Nexus Capital.<ref name=":4" /><ref name=":5" /><ref>Template:Cite web</ref> After the deal fell through in December 2024, liquidation sales began at all 963 stores.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>

One of the key factors contributing to Big Lots’ financial decline was a sustained drop in revenue. The company’s annual revenue fell from $6.19 billion in 2020 to $4.51 billion on a trailing twelve-month basis in 2024, a decline of 27.1%.<ref>Template:Cite web</ref> Comparable store sales decreased by 9.9% in the first quarter of 2024 and 8.6% in the fourth quarter of 2023, extending a streak of nine consecutive quarters of negative same-store sales.<ref>https://www.nasdaq.com/press-release/big-lots-reports-q1-results-2024-06-06 Template:Bare URL inline</ref><ref>Template:Cite press release</ref>

On January 1, 2025, a U.S. bankruptcy court approved a sale agreement allowing Gordon Brothers Retail Partners to sell between 200 and 400 Big Lots stores, as well as distribution centers and intellectual property, to Variety Wholesalers Inc. The decision, approved by Judge Kate Stickles, faced objections from several vendors. Companies such as Tempur Sealy and Serta Simmons argued that the deal prioritized repayment to lenders while leaving trade creditors with substantial losses. They also alleged that Big Lots accrued approximately $250 million in vendor debt after becoming aware it would be unable to fully repay its obligations.

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Big Lots revenue fell from $6.19B in 2020 to $4.51B in 2024.

See also

References

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