Big Lots — inflation killed the discount king, 963 stores liquidated

Big Lots was founded in 1967 as Consolidated Stores in Columbus, Ohio, pioneering the closeout retail model — buying excess inventory, overstock and discontinued merchandise from manufacturers and other retailers and selling it at deep discounts. The chain grew to become one of America's most recognisable discount retailers, operating more than 1,400 stores at its peak and serving lower and middle-income households who relied on its bargains for furniture, home goods, food and seasonal merchandise. By 2020 it generated $6.19 billion in annual revenue and employed approximately 22,900 people.

The pandemic-era consumer spending boom temporarily boosted Big Lots — stimulus checks sent its core customers shopping. But when inflation surged in 2022, those same customers were hit hardest. Big Lots' core demographic had less disposable income, while its heavily leveraged balance sheet — including costly sale-leaseback agreements on hundreds of stores — left it unable to cut prices enough to compete. The chain posted nine consecutive quarters of same-store sales declines, with revenue falling 27% from $6.19 billion in 2020 to $4.51 billion by mid-2024.

Big Lots filed Chapter 11 on 9 September 2024 with 963 stores. It secured $707.5M in financing and proposed a sale to Nexus Capital, but the deal collapsed in December 2024. Liquidation sales began at all 963 stores. On 28 December, Gordon Brothers bought the brand and transferred 200–400 stores to Variety Wholesalers, saving roughly 4,000 jobs. The remaining stores closed permanently. The company converted to Chapter 7 liquidation on 10 November 2025. The brand was revived with 218 locations by 2026, but the original 57-year-old discount institution was essentially dismantled.