Big Lots is an Americandiscountretailchain specializing in closeout, overstock, and surplus merchandise, offering affordable products across categories such as furniture, home décor, seasonal items, soft home goods, food and consumables, hard home products, electronics, toys, and accessories.[1] Founded in 1967 by entrepreneur Sol A. Shenk as Consolidated Stores Corporation and headquartered in Columbus, Ohio, the company grew into one of the nation's largest broadline closeout retailers, emphasizing value-driven shopping for budget-conscious consumers through physical stores and an e-commerce platform.[1] In September 2024, Big Lots filed for Chapter 11 bankruptcy amid financial challenges, leading to the closure of hundreds of locations and liquidation sales beginning in December 2024.[2] By early 2025, a court-approved asset sale transferred operations to Variety Wholesalers, Inc., which acquired 219 stores and two distribution centers, reopening them in phases across 15 states primarily in the Midwest, Southeast, and Mid-Atlantic regions to continue the brand's bargain-focused model.[2]
History
Founding and early years
Big Lots originated with the founding of Consolidated Stores Corporation by Sol A. Shenk in 1967 in Columbus, Ohio, where the company initially focused on trading surplus and closeout goods, including auto parts and overstock inventory from manufacturers.[3] Shenk, a merchandiser with a background in deal-making, started with a single discount wholesale and retail outlet emphasizing these opportunistic purchases to capitalize on liquidated assets.[4]During the 1970s, the business evolved under the name Consolidated International, expanding its wholesale operations by sourcing liquidated merchandise directly from manufacturers and retailers facing overstock or bankruptcy situations.[5] This period established the core model of acquiring excess inventory at deep discounts, which became the foundation for future retail endeavors, allowing the company to build a network of suppliers for irregular or surplus items across various categories.[3]A pivotal shift occurred in 1982 when Consolidated Stores launched its first retail store under the Odd Lots banner in Columbus, Ohio, transitioning from primarily wholesale distribution to direct-to-consumerdiscount retailing of closeout goods.[3] This move marked the beginning of a store-based format offering bargain-priced merchandise in a treasure-hunt shoppingexperience. In 1985, the company conducted an initial public offering that raised $33.4 million, providing capital for rapid store expansion and operational scaling.[6] By 1989, with over 300 locations operating under the Odd Lots name in Ohio and beyond, Consolidated had solidified its identity as a closeout retail specialist.[3] The chain would later rebrand fully to Big Lots in 2001.[7]
Expansion and rebranding
During the 1990s, Big Lots, operating under its parent company Consolidated Stores Corporation, pursued aggressive expansion through both organic growth and strategic acquisitions to capitalize on the closeout retail sector. The company opened over 300 new stores since 1982, reaching a total of more than 500 locations by 1999, bolstered by key purchases such as KB Toys in 1996 for $315 million, which temporarily diversified its offerings into toy retail.[3] Additionally, the 1997 acquisition of MacFrugals (including Pic 'N' Save) for $995 million in stock significantly accelerated store proliferation, adding hundreds of outlets and enhancing distribution capabilities with a new 665,000-square-foot facility in Montgomery, Alabama.[3][8] This period marked a shift toward broader market penetration, building on the closeout model established in prior decades.In 2001, Consolidated Stores Corporation underwent a major rebranding to Big Lots, Inc., unifying its disparate store banners under a single identity to streamline operations and leverage the most recognized name in its portfolio. The name change, approved by shareholders on May 15, 2001, affected over 1,300 stores and included the phase-out of remaining Odd Lots locations by the end of 2002, along with closures of other banners like Mac Frugal's and Pic 'N' Save.[3][9] To support the transition, the company launched a $27 million national advertising campaign emphasizing bargain pricing and variety, which helped solidify brand cohesion amid the retail sector's competitive landscape.[3]The rebranding facilitated further growth, culminating in a peak of over 1,400 stores by 2004, with a strategic emphasis on underserved suburban and rural markets where discountretail demand was high.[3][10] This expansion included the divestiture of non-core assets, such as selling KB Toys back for $305 million in December 2000, allowing refocus on core closeout merchandise.[3]To diversify beyond general merchandise, Big Lots introduced dedicated furniture galleries within its stores starting in the early 2000s, building on earlier furniture departments that numbered 171 by 1998 with 26 freestanding outlets. By 2002, the company operated 62 freestanding Big Lots Furniture stores, offering affordable upholstery and home furnishings to attract value-conscious shoppers and boost average transaction sizes.[3][11]Financially, these developments were underpinned by milestones like the company's initial public offering in 1985, which raised $33.4 million through a stock sale on the American Stock Exchange and provided capital for subsequent store openings. During the retail boom of the late 1990s and early 2000s, Big Lots' stock performance reflected robust growth, with shares benefiting from acquisition-driven revenue increases and operational efficiencies that positioned it as a key player in discount retailing.[3][12]
International ventures
In the early 2000s, Big Lots expanded beyond its traditional U.S. retail model by launching Big Lots Wholesale, an onlineplatform designed for business-to-business bulk closeout sales across 16 product categories, including seasonal items and overstock merchandise.[3] This initiative, introduced in November 2001 via www.Biglotswholesale.com, aimed to leverage the company's sourcing expertise to serve wholesalers, exporters, and small retailers, marking an early digital foray amid broader U.S. expansion efforts.[3]Big Lots' most notable international retail venture began in 2011 with the acquisition of Canada's Liquidation World Inc., a closeout retailer operating 89 stores primarily in Ontario and British Columbia.[13] For approximately $20 million in cash plus assumed liabilities, Big Lots gained entry into the Canadian market, retaining the existing infrastructure and workforce of over 1,000 employees while rebranding five locations as Big Lots stores to test the branded format.[13][14]However, the Canadian operations faced significant hurdles, including intensified competition from expanding players like Walmart and the entry of Target Canada, alongside $13.5 million in losses for the prior fiscal year. These pressures, compounded by limited capital for sustained investment, led to the announcement in December 2013 that all 78 Canadian stores—encompassing both Liquidation World and Big Lots banners—would close by April 2014, resulting in about 1,600 job losses.[14]Parallel to these retail efforts, Big Lots Wholesale encountered declining sales and margin growth amid rising e-commerce competition, prompting a strategic shift toward core U.S. consumer operations. The division, which included showrooms in multiple U.S. cities and had operated for over three decades, began a 90-day wind-down in November 2013, liquidating inventory and affecting fewer than 50 employees, with a pretax charge of $5 million to $8 million recorded in the third quarter.The Canadian experience highlighted broader challenges for U.S. retailers entering foreign markets, such as underestimating competitive dynamics and failing to fully adapt merchandising to local preferences and consumer behaviors.[15] These issues, including operational mismatches and market saturation in key provinces, underscored the difficulties of cross-border expansion without deep localization, ultimately reinforcing Big Lots' focus on domestic retail.[15]
Operations
Store format and merchandise
Big Lots employs a signature closeout retail model, specializing in the acquisition of overstock, liquidated, and surplus inventory from manufacturers, retailers, and brands at significant discounts, which allows the company to offer these goods to customers at reduced prices. This approach enables Big Lots to provide a diverse assortment of brand-name products that are typically unavailable or more expensive at other discount outlets. The model emphasizes opportunistic buying from distressed sellers, as demonstrated by the company's revamped procurementstrategy in recent years to prioritize inventory from overstocked and troubled sources.[16][17][18]The primary merchandise categories at Big Lots include furniture, which has historically accounted for approximately 23-30% of sales but is being further scaled back under current ownership in favor of expanded apparel and other categories; soft home goods such as bedding and decor; consumables and groceries, with an expansion in food and essentials during the 2020s to attract more frequent shoppers; apparel; toys and electronics; hard home items like kitchenware; and seasonal merchandise. This broad mix targets everyday needs and impulse buys, with furniture and home categories often comprising over half of the assortment in stores. The grocery segment, in particular, has grown as part of efforts to enhance store traffic and compete in value-oriented consumables.[19][17][20][21][22]Big Lots stores feature a treasure-hunt shopping experience, characterized by dynamic inventory placement that encourages customers to explore changing selections of closeout deals, fostering a sense of urgency and discovery similar to off-price retailers. The layout typically includes prominent displays of furniture and seasonal items, alongside aisles dedicated to bargains and value packs, with larger-than-average store footprints—often around 30,000 square feet—allowing for a wide variety of goods without a rigid, predictable arrangement. This format appeals to budget-conscious consumers seeking unique finds at low prices.[23][24][25][26]The pricing strategy revolves around everyday low prices on closeout merchandise, with many items available for under $10 to maintain accessibility for value-driven shoppers, though recent critiques noted some pricing as too high before adjustments under new ownership. Dynamic elements, such as limited-time deals and bundle offers, further enhance perceived value without frequent sales events. Over time, the store format has evolved to include extreme value sections highlighting ultra-low-priced essentials and greater online integration through biglots.com, supporting click-and-collect options for in-store pickup to blend digital and physical shopping.[27][28][29][30]
Supply chain and locations
Big Lots maintained a network of distribution centers to support its closeout retail model, which required efficient handling of opportunistic inventory acquisitions and rapid distribution to stores. As of 2024, the company operated four primary facilities located in Columbus, Ohio; Tremont, Pennsylvania; Montgomery, Alabama; and Durant, Oklahoma, each designed to serve regional clusters of stores with high-volume, short-shelf-life merchandise. Following the 2025 acquisition by Variety Wholesalers, Big Lots operates two distribution centers to support its network of 219 stores across 15 states. Earlier in 2023, Big Lots closed four forward distribution centers in McDonough, Georgia; Bethel, Pennsylvania; Lacey, Washington; and Merrillville, Indiana, as part of cost-cutting measures to address excess capacity and streamline operations amid declining sales.[31][2] These centers facilitated the quick processing of closeout goods, enabling inventory to move from acquisition to store shelves in a manner optimized for the company's bargain-focused strategy.The sourcing process for Big Lots emphasized opportunistic purchases of overstock, discontinued, and distressed merchandise from manufacturers, retailers, and brands, often through relationships with asset management and liquidation firms. In early 2024, the company revamped its procurement approach to prioritize these closeout opportunities, which allowed for deep discounts on a diverse range of products while maintaining low acquisition costs.[16] As of 2024, this model supported an inventory turnover rate of approximately three times per year, reflecting the fast-paced nature of closeout deals where merchandise was replenished frequently to capitalize on limited-time bargains.[32]Geographically, Big Lots concentrated its store footprint in secondary markets, rural-suburban areas, and middle-income communities, where price-sensitive shoppers predominated, avoiding direct competition in major urban centers. At its peak in the mid-2000s, the chain operated over 1,400 locations across 48 states, with the heaviest presence in the Midwest (e.g., Ohio with the most stores) and Southeast (e.g., Florida and North Carolina). As of June 2025, following the acquisition, Big Lots operates 219 stores across 15 states, primarily in the Midwest, Southeast, and Mid-Atlantic regions.[10][33][25][2]To enhance its omnichannel presence, Big Lots integrated e-commerce with in-store services, such as buy-online-pickup-in-store (BOPIS), which reduced fulfillment costs and boosted digital sales growth, particularly during the early 2020s.[34] For larger items like furniture, the company relied on third-party logistics providers, including partnerships with services like Shipt for same-day delivery from stores and specialized 3PL firms for nationwide shipping, ensuring efficient handling of bulky goods without maintaining an in-house fleet.[35][36]
Corporate affairs
Leadership and headquarters
Big Lots was headquartered in Columbus, Ohio, from its founding in 1967 until early 2025, with the corporate facility at 4900 E. Dublin Granville Road serving as the central operations base for over 1,000 corporate employees prior to 2024.[37][38] Following the acquisition by Variety Wholesalers, Inc., in early 2025, corporate operations for Big Lots have been integrated into Variety Wholesalers' headquarters at 218 South Garnett Street, Henderson, North Carolina.[39]The company was founded by Sol Shenk, who served as its initial leader and built the business from a single surplus outlet into a major closeout retailer before his death in 1994.[4][40] Succession followed through a combination of family involvement and professional executives, with Michael J. Potter joining in 1991 and ascending to Chairman and CEO, guiding the company through significant expansion until 2005.[41][42] Steve Fishman succeeded Potter as CEO, leading until his retirement in 2013. David Campisi then took over as President and CEO from 2013 to 2018, emphasizing operational improvements and omnichannel strategies during his tenure.[43][44] Bruce K. Thorn was appointed President and CEO in 2018, focusing on digital transformation and cost efficiencies amid evolving retail challenges until his departure in December 2024.[45][46][47] Since the 2025 acquisition by Variety Wholesalers, Big Lots has been managed as a division under the leadership of Variety Wholesalers' President and CEO Lisa Seigies.[48]The board of directors historically prioritized members with deep retail expertise to support strategic decision-making. During the bankruptcy proceedings, transitional appointments included Elizabeth LaPuma in January 2025, but following the asset sale, Big Lots no longer maintains a separate board, with governance integrated into Variety Wholesalers.[49] At its peak in 2014, Big Lots employed approximately 38,000 associates across its stores and operations, maintaining a union-free structure to facilitate flexible workforce management.[50] Following the 2025 restructuring, Big Lots employs approximately 5,500 associates across its 219 stores, as of November 2025.[51]
Subsidiaries and brands
Big Lots has historically operated several subsidiaries and brands to diversify its discount retail model, including standalone divisions and acquired entities that were later integrated or divested. One key early brand was Odd Lots, under which Consolidated Stores Corporation opened its first closeout store in Roseville, Ohio, in 1982; this banner was used for expansion but faced naming conflicts with a separate New Jersey retailer acquired by Revco in 1983, leading to geographic restrictions on its use outside Ohio until a full rebranding to Big Lots in 2001, which unified Odd Lots, McFrugal's, and Pic 'N Save stores under a single identity.[52][7]In 2004, Big Lots launched Big Lots Furniture as a dedicated subsidiary, operating 45 standalone stores focused on affordable furniture and home furnishings at peakexpansion around the early 2000s, with up to 62 freestanding locations by 2002; these were gradually integrated into core Big Lots stores as dedicated furniture departments by the late 2000s to streamline operations and reduce overhead.[10][3] Similarly, Big Lots Wholesale served as a B2B arm launched in November 2001 via an online platform at biglotswholesale.com, offering bulk closeout merchandise across 16 categories at below-wholesale prices to resellers; this division operated semi-independently until its closure in 2013 to allow Big Lots to concentrate resources on its primary retail business.[3][53]Among acquired entities, Big Lots entered the Canadian market in 2011 by purchasing Liquidation World Inc. for $20 million, gaining 89 closeout stores that were rebranded as Big Lots and LW Stores; however, due to underperformance, all 78 Canadian locations were shuttered by early 2014, effectively phasing out the branding and exiting international operations.[54][55]To enhance its product assortment, Big Lots developed in-house private labels, notably Real Living and Broyhill, introduced in the 2010s for home categories including furniture, mattresses, fashion and utility bedding, bath items, and décor; these brands emphasized moderately priced, multi-category assortments and generated combined annual sales surpassing $1.3 billion by fiscal 2021, establishing significant scale within the company's offerings.[56]During the 2010s, Big Lots pursued divestitures of non-core units to refocus on U.S. discount retail, including the aforementioned closure of Big Lots Wholesale in 2013 and the full exit from Canada in 2014, which together eliminated underperforming divisions and reduced operational complexity.[53][55] As of 2025, following the acquisition by Variety Wholesalers, Inc., Big Lots operates as a brand and division alongside Variety's other chains, such as Roses and Maxway, with product assortments adjusted to include less furniture and more apparel and everyday essentials.[57][28]
Financial history and decline
Growth and profitability
Big Lots experienced significant revenue growth from the late 1990s onward, expanding from under $1 billion annually in the mid-1990s to surpassing $5 billion by fiscal 2016.[58] This trajectory was fueled by aggressive store additions, reaching approximately 1,430 locations by 2004 and stabilizing around 1,400 to 1,450 stores through the 2010s and into the early 2020s.[10] Comparable store sales growth, averaging 2-4% in stable periods, further supported this expansion, alongside strategic merchandising shifts toward higher-margin categories.[59]Profitability peaked in the late 2010s, with net income reaching $190 million in fiscal 2018 on revenues of $5.23 billion.[60] EBITDA margins hovered between 6.5% and 8.8% during these years, reflecting operational efficiencies from optimized supply chain logistics and cost controls.[61] Key drivers included the furniture and home furnishings category, which accounted for about 30% of total sales, and e-commerce penetration growing to approximately 6% of revenues, or around $330 million annually by fiscal 2022.[25][62]Listed on the New York Stock Exchange under the ticker BIG since its 1985 initial public offering, Big Lots' market capitalization peaked at $2.29 billion in 2010 amid strong consumer demand for discount retail.[63] The company maintained consistent quarterly dividends of $0.30 per share through early 2023, providing shareholder returns during growth phases.[64] Big Lots' fiscal year concludes on the Saturday nearest to January 31, aligning with retail industry norms for holiday season reporting.[65]
Challenges leading to bankruptcy
Big Lots faced intensifying competitive pressures from the late 2010s onward, as dollar stores such as Dollar General and Dollar Tree expanded rapidly, capturing a larger share of low-income consumers with their convenience and lower price points on everyday essentials.[66] Online retailers like Amazon and Walmart further eroded Big Lots' market position by offering broader assortments and faster delivery options, drawing away budget-conscious shoppers who previously relied on Big Lots for closeout deals.[24] These rivals' aggressive growth—Dollar General alone added over 1,000 stores between 2018 and 2023—highlighted Big Lots' struggles to differentiate in a consolidating discountretail landscape.[67]Inflation and supply chain disruptions from 2021 to 2023 exacerbated these challenges, driving up procurement costs for merchandise and contributing to persistent declines in comparable sales.[68] The company experienced a comparable sales drop of approximately 10% in fiscal 2023, amid broader economic pressures that reduced consumer spending on discretionary items.[59] High interest rates compounded the issue, limiting Big Lots' ability to refinance debt affordably and straining cash flows as inventory costs rose due to global logistics bottlenecks.[69]Strategic decisions, including an over-reliance on furniture sales, proved particularly vulnerable during housing market slowdowns starting in 2022, when elevated mortgage rates and low inventory stifled home purchases and renovations.[70] Furniture, which accounted for a significant portion of revenue, saw sharp declines as demand evaporated, with the category dropping over 3% industry-wide through late 2024.[71] Big Lots' 2024 attempt to pivot toward grocery offerings, aimed at attracting more frequent visits from essential shoppers, came too late and failed to reverse the sales trajectory amid execution hurdles and competitive saturation in food retail.[66]By the end of fiscal 2023, Big Lots carried around $410 million in long-term debt, with interest expenses climbing due to higher prevailing rates, further eroding profitability.[72] This burden intensified liquidity constraints, as annual interest payments approached $40 million amid declining revenues.[73] In response, the company shuttered approximately 70 underperforming stores between 2023 and mid-2024, including about 40 closures announced early in the year, to rationalize its footprint and cut operating costs.[24]
Bankruptcy and restructuring
Filing and proceedings
On September 9, 2024, Big Lots, Inc. and certain affiliates filed voluntary petitions for relief under Chapter 11 of the United StatesBankruptcy Code in the United StatesBankruptcy Court for the District of Delaware.[74] The petitions estimated assets and liabilities each in the range of $1 billion to $10 billion, reflecting the company's substantial scale amid pre-filing debt pressures from prolonged sales declines and competitive pressures.[74][75]As part of its initial reorganization strategy, Big Lots entered into a stalking horseasset purchase agreement with an affiliate of Nexus Capital Management for approximately $760 million, intended to enable a going-concern sale of the core business while streamlining operations and shedding underperforming assets.[74] The court granted first-day motions on an interim basis shortly after filing, including approval for up to $707.5 million in debtor-in-possession financing from existing lenders, primarily to maintain inventory, pay employees, and sustain store operations throughout the proceedings.[76][77]To address immediate cost-cutting needs, Big Lots received court authorization to close and liquidate approximately 344 stores starting in October 2024, targeting locations identified as unprofitable and allowing the company to focus resources on higher-performing units during the restructuring.[77] These closures were part of broader efforts to rationalize the store footprint, with liquidation sales commencing to monetize inventory and real estate.[69]The proceedings took a significant turn in December 2024 when Nexus Capital Management terminated the stalking horse agreement, citing challenges in obtaining necessary financing amid evolving market conditions and due diligence findings.[78] This withdrawal shifted Big Lots' focus from reorganization to pursuing an orderly liquidation of remaining assets under court oversight, with motions filed to convert the Chapter 11 cases accordingly.[79]
Acquisition by new owners
On December 31, 2024, a U.S. bankruptcy court approved an asset purchase agreement with Gordon Brothers Retail Partners, which closed on January 3, 2025, transferring key operational assets including between 200 and 400 store leases, two distribution centers, and the company's intellectual property to facilitate a going-concern sale to Variety Wholesalers Inc.[80][57] This transaction, structured after Big Lots' Chapter 11 filing in September 2024, averted a complete wind-down of the business by preserving select assets for continued discount retail operations.[81]The deal salvaged portions of Big Lots' network amid widespread closures, with more than 600 stores shuttered permanently during the bankruptcy process, while over 200 locations were retained for ongoing use.[82][2]Gordon Brothers managed the orderly liquidation of non-transferred assets, such as excess inventory and additional real estate, to maximize creditor recovery.[83]Under the new structure, Variety Wholesalers—a Henderson, North Carolina-based operator of over 400 discount stores including the Roses Discount Stores, Roses Express, and Maxway brands—integrated the acquired Big Lots locations into its portfolio to expand its regional presence in closeout and value merchandising.[48][81] Reopenings commenced in April 2025 with an initial phase of 9 stores across multiple states, followed by 132 locations in May in two phases on May 1 and May 15, and a final phase of 78 stores on June 5, for a total of 219 stores by June 2025, focusing on high-traffic areas in the Southeast and Mid-Atlantic regions.[84][82][85][86] By June 2025, a total of 219 stores had reopened, focusing on high-traffic areas in the Southeast and Mid-Atlantic regions.[2]As of November 2025, the Big Lots brand maintains continuity under Variety Wholesalers' oversight, with ongoing efforts to rehire former employees, realign supply chains through the acquired distribution centers, and explore potential rebranding or synergies within Variety's discount ecosystem, even as the original debtor entity's bankruptcy case was converted to Chapter 7 on November 10, 2025, for final liquidation of residual assets.[87][88] This transition ensures the preserved stores operate independently as a viable retail entity, supporting job retention for thousands and sustained bargain shopping options.[89]