This guide follows the case from the petition through the latest verified store, ownership and online-shopping developments. Dynamic figures carry a check date of October 20, 2026.
Here is what you'll find: why Big Lots filed, what happened to the Nexus deal, who bought the assets, what the Chapter 7 conversion means for creditors and shareholders, and whether Big Lots is still in business.
Key Takeaways
- Big Lots began with a Chapter 11 restructuring and sale process, not an instant shutdown.
- The Nexus deal never closed; Gordon Brothers bought the assets and Variety Wholesalers runs the stores.
- The debtor entered Chapter 7 on November 10, 2025, but the brand lives on.
- Store counts and online availability change, so always check the "as of" date.
Why Did Big Lots File for Bankruptcy?
No single cause explains the filing. The court record points to a mix of weak sales, a supplier shock and tightening liquidity.
Demand and market pressure
Big Lots' Q2 2024 10-Q reported lower comparable sales and net sales across all merchandise categories. The 10-Q does not assign a percentage or a specific cause. Inflation, interest rates and competition are commonly cited in coverage, but the first-day declaration does not name them as management's stated reasons.
Company-specific problems
- In November 2022, United Furniture Industries abruptly ceased operations. The first-day declaration calls UFI Big Lots' largest supplier and the primary vendor for the Broyhill brand.
- As of August 31, 2024, the ABL borrowing base was $552.2 million, with $412.0 million borrowed and $79.0 million available.
- Reported liquidity was $108.5 million before the minimum-excess-availability covenant's impact.
- On July 31, 2024, Big Lots amended its credit facilities. Permitted store closures rose from 150 to 315, ABL commitments fell from $900 million to $800 million, and the rate rose 50 basis points.
Sale-leaseback details are not clearly established in the public filings summarized here, so they are omitted.
Why Chapter 11 made sense first
Chapter 11 lets a debtor generally keep running its business. It opened access to DIP financing, gave Big Lots tools to decide which leases and contracts to keep, and created a court-supervised sale process while stores stayed open.
What Happened During Big Lots' Chapter 11 Case?
Big Lots, Inc. and affiliates filed on September 9, 2024 in the U.S. Bankruptcy Court for the District of Delaware. The lead case is 24-11967 (JKS), covering 19 debtors, including Big Lots, Inc., Big Lots Stores, LLC, Broyhill LLC and Big Lots eCommerce LLC.
At filing, the debtors described more than 1,300 stores in 48 states, five distribution centers and an e-commerce store.
Capital structure and DIP financing
- Prepetition ABL: a five-year facility, amended to $800 million.
- Prepetition term loan: a $200 million delayed-draw, first-in/last-out facility.
- DIP: $707.5 million in total commitments, including $35 million of new financing, split between a $550 million ABL and a $157.5 million term facility. PNC Bank, N.A. is the ABL administrative agent.
- Funding: $25 million of the term commitment was made available after the September 10 interim order.
Roll-up mechanics, adequate-protection terms and the carve-out are best confirmed in the interim and final DIP orders. Separately, a first-day table lists about $433.6 million of ABL principal against the $412.0 million August 31 figure. The measurement dates differ, so treat them as distinct.
Closures
Debtors reported initial closure waves from July 2024, including roughly 300 stores. That is an early figure, not a final total, and early closure lists do not describe today's store network.
Timeline
| Date | Event |
|---|---|
| Sept 9, 2024 | Chapter 11 petitions filed |
| Sept 10, 2024 | Interim DIP order entered |
| Dec 19, 2024 | Big Lots says it no longer expects to complete the Nexus APA |
| Dec 21, 2024 | Gateway's notice purporting to terminate the APA is recorded |
| Jan 2, 2025 | Gordon Brothers sale approved |
| Jan 3, 2025 | Sale closes |
| Oct 24, 2025 | Conversion motion filed |
| Nov 10, 2025 | Chapter 7 order entered |
The conversion motion describes sale approval on December 31, 2024, but the docketed order is January 2, 2025.
How Did the Sale Process Change Big Lots' Ownership and Brand?
A stalking-horse bidder is the first bidder to submit an offer, setting a floor for others. That is different from the buyer that closes. Nexus was announced; it was not the final buyer.
What happened to Nexus
On December 19, 2024, Big Lots said it no longer anticipated completing the Nexus APA and was pursuing an alternative going-concern deal while preparing going-out-of-business sales. The release gave no reason. A court filing records Gateway's December 21 notice purporting to terminate the APA. Public filings do not establish the bid amount.
Gordon Brothers and Variety
- Gordon Brothers Retail Partners bought assets through the court-approved sale, which closed January 3, 2025.
- Transferred assets included stores, distribution centers and intellectual property, with no purchase price disclosed.
- The sale enabled Variety Wholesalers to operate 200-400 stores under the Big Lots name, with up to two distribution centers.
- The order let Gordon Brothers designate remaining nonresidential leases for assignment to Variety or another buyer. The docket record says none were assigned under that provision.
Variety's operation is a separate arrangement from the asset sale itself. Not every former location stayed a Big Lots. For example, HomeBuys took over the former site at 1171 Hill Road N in Columbus, reported May 11, 2026.
What Did the Chapter 7 Conversion Mean?
Chapter 11 let Big Lots operate and run a sale. Chapter 7 is liquidation, with a trustee administering and selling what remains.
Reasons and date
The debtors filed the conversion motion on October 24, 2025, with a proposed hearing on November 4. The motion described the sale as completed, wind-down work underway, nearly $300 million of claims still to reconcile and remaining assets to monetize. The order was entered and effective November 10, 2025. November 4 was only the proposed hearing date.
Who to watch
- Chapter 7 trustee: Alfred T. Giuliano.
- Claims and noticing agent: Kroll Restructuring Administration.
- Bar dates:
- General claims: January 31, 2025 (extended from December 30, 2024)
- Government claims: March 10, 2025
- Pre-closing administrative claims: April 3, 2025 at 5:00 p.m. ET
Neither the motion nor the conversion order includes a records-transfer mandate. The filings also give no quantified recovery estimate for unsecured creditors, administrative claimants or equity.
Conversion of the debtor does not mean every store vanished. The estate and the Variety-operated brand follow separate paths.
What Is Big Lots' Current Status for Customers and Stakeholders?
Stores and online
- The official locator returned 219 locations on October 20, 2026, up from 217 captured on October 7, 2026.
- Variety said in May 2025 that 78 more stores would reopen June 5, bringing the reopened total to 219. The FAQ says 200+ have reopened.
- The current FAQ says shopping is in-store only and inventory is not available online. Many stores offer third-party delivery.
- Returns: most items within 30 days with receipt, furniture within 14 days, mattress sales final.
Closures may stem from the original liquidation, post-sale portfolio choices, lease outcomes or later operator decisions. A clean split among those causes is not readily available from public records.
For creditors, vendors and employees
Start with the Kroll case site, trustee notices, sale orders and lease decisions on the docket. Those are the primary records.
Tracking the case
Professionals can follow filings, dockets, DIP financing, sale milestones and outcomes in a platform like BankruptcyData, which holds 600k+ records across 45+ years of U.S. bankruptcy activity. It also benchmarks current cases against historical ones.
Bankruptcy records and news stories can describe different entities or stages. Check primary court documents and publication dates before relying on any figure.
Frequently Asked Questions
How many Big Lots stores are left in the US?
The official store locator returned 219 locations on October 20, 2026. At filing, the debtors described more than 1,300 stores under a different operator and at a different time.
Which Big Lots locations are closing?
Closure lists change and early bankruptcy lists don't reflect today's network. Check the store locator or Variety's announcements for the latest.
Which company bought out Big Lots?
Nexus Capital was announced as a proposed buyer but the deal wasn't completed. Gordon Brothers bought the assets in the court-approved sale, and Variety Wholesalers operates the Big Lots-branded stores.
Can I still shop at Big Lots online?
No. Shopping is in-store only and inventory isn't available online, though many stores offer third-party delivery.
Is Big Lots going out of business?
The Big Lots, Inc. estate is in Chapter 7. The brand continues under Variety Wholesalers, with 219 locations on the locator as of October 20, 2026.
