While most retail stores seem to be closing down locations in the US due to financial strains, there is one that has managed to recover from certain doom and reverse their bankruptcy filing in one very surprising move. Big Lots is reopening 78 stores this week in nine states and that is a great sign not just for the company, but also for the locations they are now serving once again. Meanwhile, Dollar General seems to be downsizing their inventory of stores and will soon be closing down 96 of its stores as well as restructuring the company to make ends meet.
Big Lots is a U.S.-based discount retailer known for selling overstock and closeout goods. It began as Consolidated Stores in 1967 and operated from its headquarters in Columbus, Ohio. With more than 900 locations nationwide, the company filed for Chapter 11 bankruptcy in October 2024 and by December, it revealed plans to shut down operations entirely, initiating liquidation sales and preparing to close all remaining stores by 2025.
Luckily for them, during the proceedings they chose to transfer between 200 and 400 of their stores and a couple of their distribution centers to Variety Wholesalers, who were interested not just in the purchase, but also in maintaining the integrity of he original company and in making thrive once again. The agreement was made in December 2024, just before the new year, and now, just six months later, Variety Wholesalers is making good on their intention and getting the locations back to operating standard.
The 78 stores that Big Lots is reopening in the US as part of its recovery from bankruptcy
The total number of stores that Variety Wholesalers ended up acquiring was 219, and of those 78 are being opened soon across Florida, Georgia, Kentucky, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia. This is not the first reopening wave that has happened but it is the most significant and the one with the highest number of locations.
There have been four phases of reopening and both Big Lots and Variety Wholesalers, as well as their clients, could not be happier with the situation. In fact, the company released a statement calling the customer’s response “overwhelmingly positive.” Lisa Seigies, CEO of Variety Wholesalers, stated in a statement that “offering great value will always be our core mission,” and announced that a grand opening with special offers will be held in the fall at the 219 reopened stores.
While Big Lots is ready to reopen once again and return to its former glory, Dollar General has had to take the opposite strategy by announcing plans to shut down 96 of its stores during 2025, along with 45 locations under its pOpshelf brand. The company has yet to specify which states or stores will be affected, though it did confirm that six pOpshelf sites will be converted into standard Dollar General locations.
Financially, Dollar General saw a 5% rise in net sales, reaching $40.6 billion, but experienced a steep 32.3% drop in net income due to rising expenses and tighter profit margins. CEO Todd Vasos still took time to reassure clients and noted that the closures represent a small portion of the overall store count and reaffirmed the company’s intention to open 575 new stores within the year, so while the stores that are closing will be a bit of a setback, they are still planning to continue their expansion.
This situation is reflecting how volatile the current economy feels, with giants like Dollar General still needing to make extremely measured decisions to ensure profitability and other companies like Big Lots deciding to go for it and try to get back to their former glory.