Big Lots! makes an unexpected U-turn in the United States: a key decision

In recent years, the outlook for major retail chains in the United States has been more uncertain than ever. Rising prices, persistent inflation, and declining consumer spending have forced many industry giants to make drastic decisions. Some have disappeared from the map; others are still trying to survive.

One of these brands is Big Lots!, which, after a severe financial blow, has surprised the market. The discount store chain filed for bankruptcy in 2023, closed hundreds of locations, and seemed to be on the verge of total collapse. However, it has managed to recover thanks to a new business deal that marks a turning point in its recent history.

From bankruptcy to a new opportunity

Last year, Big Lots! filed for Chapter 11 bankruptcy due to declining consumer spending and rising costs. By the end of 2024, the company had about 1,400 stores, but the outlook was far from promising. An initial attempt to sell to Nexus Capital Management failed at the last minute, which led to the start of a liquidation process in more than 500 locations.

Nevertheless, the situation took an unexpected turn. Last January, Gordon Brothers Retail Partners negotiated a deal that allowed Variety Wholesalers to acquire between 200 and 400 new stores, as well as two distribution centers. The plan was clear: keep the Big Lots! brand alive and bring it back to the market with greater strength.

The first signs of Big Lots!'s change began to appear last April, when several stores reopened under new management, according to The Street. Despite initial skepticism, the public's reception was very positive, which motivated new phases of reopening throughout the year.

A final phase to complete the comeback

June 5 marked the start of the fourth and final wave of reopenings, with 78 new Big Lots! stores resuming operations. These branches are spread across states such as Florida, Ohio, Virginia, North Carolina, and Georgia, among others. With this new phase, the company now has 219 operating locations since the acquisition was finalized.

The plan doesn't stop there. Variety Wholesalers has confirmed that they will continue expanding the Big Lots! network, reclaiming some of the stores closed during the crisis. The strategy focuses on strengthening the connection with local communities and once again offering products at competitive prices, a formula that had worked for decades.

"Customer support has exceeded all our expectations," said CEO Lisa Seigies in a statement. "Returning to the roots of Big Lots!'s success is paying off, and we will keep working to offer the best possible value." The story of this chain shows that, even in the most difficult times, it is possible to be reborn with vision, effort, and a good strategy.