Big Lots’ Rebound Continues: Securing New Partners and Reopening Stores After Bankruptcy
Big Lots, the discount retail chain, is mounting a notable comeback less than a year after filing for Chapter 11 bankruptcy protection and announcing a significant reduction in its store footprint. The company’s resurgence is fueled by strategic partnerships and the acquisition of former Big Lots locations by various retailers, signaling a renewed confidence in the brand and the discount retail market.
Following the bankruptcy filing in September 2024, Big Lots embarked on a plan to sell off leases for a substantial number of its stores. In late 2024, the company sold leases for over 460 stores to Gordon Brothers Retail Partners, a Boston-based asset liquidation firm. This move essentially put these properties on the open market, creating an opportunity for other retailers to expand their presence and capitalize on existing retail infrastructure.
Variety Wholesalers emerged as a significant player in this acquisition process, securing over 200 Big Lots locations as part of the deal. This acquisition provided Variety Wholesalers with a substantial boost to its store network, allowing the company to expand its reach and serve a wider customer base. The reopening of these stores began in April, marking a critical step in Big Lots’ recovery.
The initial wave of reopenings commenced on April 10, with nine locations welcoming customers once again. This was followed by a more extensive rollout on May 1, with 55 stores reopening their doors. An additional 70 stores were slated to reopen on May 15, further demonstrating the momentum behind Big Lots’ revitalization efforts. The company plans to continue this phased approach, with another round of reopenings scheduled for June.
These strategically timed reopenings are designed to build anticipation and excitement among consumers, culminating in a nationwide grand opening event planned for the fall. This grand opening will serve as a symbolic culmination of Big Lots’ efforts to restructure and re-establish itself as a prominent player in the discount retail sector.
Adding to the positive news, Tractor Supply, a rural lifestyle retailer, has also entered the picture as a new partner in Big Lots’ comeback campaign. According to court documents, Tractor Supply purchased 19 Big Lots leases across 15 states, as initially reported by Penn Live. This acquisition allows Tractor Supply to strategically expand its presence in key markets and potentially reach new customer segments. While the specific locations acquired by Tractor Supply have not been universally publicized, the move underscores the value that other retailers see in former Big Lots properties.
Tractor Supply’s acquisition is particularly noteworthy because it highlights the adaptability of retail spaces. Former Big Lots stores, designed to cater to a broad range of discount merchandise, can be successfully repurposed to accommodate different retail formats and target diverse consumer needs.
Beyond Tractor Supply and Variety Wholesalers, other retailers have also announced the acquisition of Big Lots locations, further illustrating the attractiveness of these properties. Ocean State Job Lot, a Rhode Island-based discount retailer, announced in March its plans to acquire 15 Big Lots locations across several states, including New Jersey, Maryland, Delaware, Pennsylvania, New York, Massachusetts, Maine, and Vermont. This acquisition will enable Ocean State Job Lot to expand its presence in the Northeast and Mid-Atlantic regions.
Earlier in February, Ollie’s Bargain Outlet, another prominent discount retailer, revealed its intention to acquire 40 former Big Lots stores. This acquisition aligns with Ollie’s strategy of expanding its store network and capitalizing on opportunities in the value-driven retail market.
Burlington Stores, Inc., another major player in the off-price retail sector, has also acquired 12 Big Lots locations in eight states. Burlington’s acquisition further underscores the appeal of these locations and the potential for repurposing them to suit different retail formats.
The flurry of acquisitions by various retailers demonstrates the inherent value in the former Big Lots properties. These locations offer existing infrastructure, established customer bases, and potentially favorable lease terms, making them attractive opportunities for retailers looking to expand their footprints and capitalize on the discount retail market.
Big Lots’ ability to attract these partnerships and facilitate the acquisition of its former locations has been instrumental in its ongoing recovery. By effectively managing its bankruptcy proceedings and strategically selling off its leases, the company has been able to generate capital and facilitate the revitalization of its brand.
The reopening of Big Lots stores under new ownership is not only beneficial for the retailers acquiring the properties but also for the communities they serve. These stores provide valuable employment opportunities and offer consumers access to affordable goods and services. In many cases, these stores serve as important anchors in their respective communities, contributing to local economic activity and providing essential shopping options for residents.
While Big Lots has faced significant challenges in recent years, its ability to navigate bankruptcy and secure new partnerships underscores its resilience and the enduring appeal of its brand. The company’s comeback campaign is a testament to its commitment to serving its customers and adapting to the evolving retail landscape. The strategic acquisition of former Big Lots locations by various retailers, coupled with the company’s own reopening plans, signals a positive outlook for the future and suggests that Big Lots is well-positioned to regain its footing in the competitive discount retail market. The grand opening event planned for the fall will undoubtedly be a pivotal moment, marking a new chapter in Big Lots’ history and solidifying its commitment to providing value and convenience to its customers.
