In a year when most retailers were closing doors, Big Lots is doing the opposite. The Ohio-based chain filed for bankruptcy in late 2024, but instead of disappearing, it’s coming back stronger. Thanks to a deal backed by Variety Wholesalers, Big Lots has been reopening over 200 stores across the country. With retail closures hitting record highs, this unexpected turnaround stands out.
According to CNN Business and AARP, it’s one of the most remarkable retail recoveries in recent memory. So how did this happen, and why now? To understand Big Lots’ bold move, you first need to see how bad 2024 got.
Thousands of Stores Shut Down. Big Lots Didn’t Flinch
Retailers were in crisis mode throughout 2024. Coresight Research reports that over 7,100 stores closed, up 69% from the year before. Big names like Family Dollar and CVS led the wave, and 7-Eleven shut 444 stores.
According to Epiq, commercial Chapter 11 bankruptcies rose by about 34–36% during the first half and three quarters of 2024 relative to the same period the year before, with total bankruptcy filings up 15–20%.
Many chains vanished, and even pharmacy deserts began appearing. The landscape was crumbling fast. But instead of backing down, Big Lots took a risk. Their bold response to this storm is what makes their comeback so unusual, and it started with serious problems.
Big Lots Faced Massive Debt and a Crisis of Confidence
Before the turnaround, Big Lots was deep in trouble. Inflation hurt sales, especially in home goods and furniture. The company’s CEO, Bruce Thorn, told CNBC there was “substantial doubt” about its future. In the first quarter of 2024, sales dropped 10.2%, and customers stopped buying big-ticket items.
By mid-2024, Big Lots had racked up $573.8 million in debt. Once a go-to for bargain hunters, the brand started losing ground. As reported by Axios and Fast Company, Big Lots had to act quickly or shut down entirely. But even with the odds stacked high, the team made a critical pivot.
Prices Went Up. Shoppers Pulled Back. Discount Stores Struggled
Throughout 2024, inflation made everyday life more expensive, and shoppers took notice. People shifted spending habits, buying cheaper brands and skipping non-essentials.
According to Adobe Analytics and PYMNTS, 60% of shoppers cut back on things they didn’t need. You’d think this would help discount chains, but many, including Big Lots, felt the pressure instead.
Home goods, their core category, took one of the hardest hits. The industry was caught in a strange place: more demand for deals, but less room to succeed. That tension created a unique opening—and Big Lots wasn’t the only one who noticed it.
Deal Finalized: Big Lots Saved by a $495 Million Buyout
The turning point for Big Lots came in January this year, when Variety Wholesalers finalized a deal to acquire 219 stores and two distribution centers. Approved by the Delaware bankruptcy court, the sale was facilitated by Gordon Brothers and ensured financial continuity for the brand.
As part of the agreement, many Big Lots employees were rehired, preserving jobs and familiar faces in communities across the country. Variety Wholesalers’ CEO promised to keep the Big Lots name and continue offering the value-focused merchandise shoppers expect.
Big Lots Completes 219 Store Reopenings Across the U.S.
Big Lots has officially wrapped up its multi-phase reopening, bringing a total of 219 stores back to life. The rollout began on April 10, 2025, with nine stores in Kentucky, Louisiana, Mississippi, North Carolina, Tennessee, and Virginia.
Two more waves followed in May, reviving 132 stores across 14 states. The final phase launched on June 5, adding 78 more locations. Variety Wholesalers strategically targeted both small towns and regional hubs in the Southeast and Mid-Atlantic, relying on its established Roses, Maxway, and Bargain Town network to support Big Lots’ full-scale return.
Local Communities Get Their Stores—and Jobs—Back
Bankruptcy advisers estimate the rescue saved between 5,000 and 10,000 jobs across the country. As part of the asset-purchase agreement, Variety Wholesalers must rehire eligible Big Lots employees at stores, distribution centers, and some corporate positions.
The reopened stores now include new family apparel sections and updated “treasure-hunt” merchandise, which shoppers have responded to very positively. According to company statements, customer feedback has been “overwhelmingly positive.” These changes show a fresh approach while keeping the bargain-focused spirit Big Lots is known for, helping to rebuild trust with longtime customers and attract new ones.
Big Lots Joins a Wave of Retail Takeovers
Retail takeovers surged in 2024, with global mergers and acquisitions reaching $97 billion, a 47% increase from the year before. Much of that growth came from deals involving struggling companies.
According to Bain & Company, retailers are now focusing on acquisitions that bring both scale and new capabilities, especially during times of tight capital. Variety Wholesalers’ purchase of Big Lots follows that trend. It gave the company an established national footprint and brand recognition at a heavily discounted price, making it a smart strategic move in a market flooded with distressed opportunities
Thousands More Store Closures Are Still Ahead
Coresight Research expects about 15,000 store closures in the U.S. by the end of 2025, more than double last year’s 7,325. That’s a 334% increase in announced shutdowns just through mid-January.
Analysts point to rising operating costs, online competition, and a shift in private-equity strategy. Investors are becoming less willing to pour money into long turnaround plans, especially for underperforming brands. The result is a growing number of retail chains calling it quits. This climate has created major opportunities for buyers like Variety Wholesalers, who can step in and rebuild where others are pulling back.
Big Lots Plans Grand Reopening Bash This Fall
According to Business Wire, Big Lots is preparing to celebrate its full return with a nationwide grand reopening event this fall. All 219 store locations will take part, offering special deals and unbeatable prices as a way to thank customers for their continued support throughout the brand’s transition.
The company says these successful reopenings have laid the groundwork for the upcoming celebration, which is expected to draw strong local turnout. While full details haven’t been released yet, Big Lots confirmed they’ll be shared in the coming months, giving shoppers something big to look forward to as the holiday season approaches.
Can Big Lots Spark a New Era for Retail Turnarounds?
The future looks promising for Big Lots and its new parent company. CEO Lisa Seigies told Business Wire the company may even expand further beyond the 219 reopened stores. With strong customer feedback and growing support, this may be just the beginning. The real question is whether other retailers can follow the same playbook.
The Big Lots comeback shows that failing doesn’t have to be the end. With the right strategy, even a brand on the brink can bounce back. As the retail world continues shifting, this turnaround could serve as a blueprint for saving others.