If you’ve driven past your local Big Lots lately and seen those massive "Store Closing" banners, you’re probably wondering if the whole ship is sinking. Honestly, it’s a mess. One week you hear they’re filing for bankruptcy, and the next, there's news about a buyout. People are confused. I get it. You just want to know if you can still buy that $300 patio set or if the doors are locking for good.
So, is Big Lots going out of business in 2024? The short answer: Not entirely, but it’s a close call. The company officially filed for Chapter 11 bankruptcy on September 9, 2024. Now, before you panic, Chapter 11 isn't the same as "we're dead." It's more like a corporate emergency room. They’re trying to stop the bleeding, cut off the parts that aren't working, and hopefully walk out alive. But the "parts" they’re cutting off? Yeah, that involves closing hundreds of stores across the country.
The Reality of the Big Lots Bankruptcy
Let’s be real for a second. Big Lots has been struggling for a long time. It wasn’t just one thing; it was a perfect storm of bad luck and some pretty questionable business choices. They got hit hard by inflation. When eggs cost $5, people stop buying decorative throw pillows. It’s just how it is.
The company reported a massive net loss of $205 million in just the first quarter of 2024. That is a lot of unsold sofas.
Initially, everyone thought a firm called Nexus Capital Management was going to swoop in and save the day. They were the "stalking horse bidder," which is basically a fancy way of saying they were the first ones in line to buy the company out of bankruptcy. But then things got weird. By December 2024, the deal with Nexus hit a major snag, and for a minute there, it looked like every single one of the 963 remaining stores was going to liquidate.
"The bankruptcy of Big Lots is the inevitable destination for a chain that has suffered severe and unrelenting pressure," says Neil Saunders, a managing director at GlobalData.
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He’s not wrong. They lost their way. They stopped being the "treasure hunt" store and started trying to compete with Target and Walmart, which is a fight you’re probably going to lose.
Which Stores Are Actually Closing?
This is where it gets localized. In 2024, Big Lots didn't just close a few shops; they slashed the fleet. We're talking about over 500 store closures announced or completed by the end of the year.
If you live in California, Florida, or Texas, you likely saw the most "Going Out of Business" signs. Those states were hit the hardest.
- California lost dozens of locations, from Anaheim to Sacramento.
- Florida saw closures in major spots like Miami and Jacksonville.
- Texas wasn't spared either, with sites in Dallas and Houston shutting down.
But here is the twist. Just when it looked like the lights were going out for everyone, Variety Wholesalers (the people who own Roses and Maxway) stepped in at the very end of December. They struck a deal to save around 200 to 400 stores.
So, if your local store survived the 2024 purge, it might actually stay open under this new ownership. It's a total rollercoaster.
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Why Is This Happening Now?
Big Lots used to be the king of "closeouts." They’d buy leftover stock from other brands and sell it for pennies. It was fun. But then they tried to become a furniture store.
They started selling big-ticket items like couches and mattresses. Then the pandemic happened. Then interest rates spiked. Suddenly, nobody wanted to finance a $1,200 sectional from a discount store. Their debt ballooned to over **$556 million**. You can only juggle that kind of money for so long before the balls start dropping.
What Happens to Your Rewards and Gift Cards?
If you have a Big Lots credit card or a stash of "Big Rewards" points, you need to use them. Seriously.
When a company is in Chapter 11, they usually keep honoring gift cards for a while to keep customers coming in. But if they pivot to a total liquidation (Chapter 7), those cards become worthless faster than a stale bag of off-brand chips.
Pro-tip: If your store is currently holding a liquidation sale, don't expect to use coupons. Most of those "Everything Must Go" sales are run by outside liquidators like Gordon Brothers. They don't care about your 20% off mailer. They want cash.
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The Future: Big Lots in 2025 and 2026
Looking ahead, the Big Lots you knew is basically gone. The version that survives will be much smaller.
As of early 2026, the plan is to focus on "extreme value." That’s corporate speak for "going back to our roots." They want more of those weird, one-off bargains and fewer overpriced floor lamps.
The new owners, Variety Wholesalers, are experts at running lean, discount-heavy shops. They aren't looking to be fancy. They want to be cheap. Honestly? That’s probably the only way Big Lots survives.
Actionable Steps for Big Lots Shoppers
If you’re a regular, here’s what you should actually do right now:
- Check the Website: Go to the Big Lots store locator. If your store says "Closing Soon," it’s time to hunt for deals.
- Spend the Points: Don't sit on your rewards. Use them this week.
- Inspect Everything: During liquidation sales, all sales are final. If that dresser has a broken leg, you own it. No returns.
- Watch the Competition: Keep an eye on stores like Ollie’s Bargain Outlet. Ollie's actually bought up a bunch of old Big Lots leases and is expanding like crazy.
Is Big Lots going out of business in 2024? The brand is survived, but it’s a shadow of what it used to be. It’s a classic story of a retail giant that flew too close to the sun and had to crash-land to save the passengers.
Keep an eye on your local flyers. If the store near you is one of the "lucky" 400 being saved by Variety Wholesalers, you might see the shelves get stocked with new (and hopefully cheaper) stuff by mid-2026. If not, well, it was a good run for the orange-and-white discount king.