Big Lots, based in Columbus, Ohio, filed for bankruptcy in September had previously announced plans to close over 340 of its 901 total stores as part of its restructuring efforts.
In Schuylkill County, the Frackville Big Lots location is not among the stores listed for sale by Gordon Brothers, the company that recently acquired Big Lots in a deal with Variety Wholesalers. Despite this, a closing sale is underway at the Frackville store, with discounts ranging from 10% to 40% off on most items. Meanwhile, the West Hazleton location is included in the list of stores slated for sale.
List of locations for sale: https://www.scribd.com/document/819357924/Gordon-Brothers-Big-Lots-1-22-24-Fnl
Adding to the uncertainty is the fate of the Tremont Distribution Center, a hub for Big Lots' operations in Pennsylvania. According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the Pennsylvania Department of Labor and Industry, 505 employees will be affected by layoffs at the facility. The layoffs were set to begin on January 6, 2025, and will continue through March 31, 2025, though no official closure date for the facility has been announced.
Big Lots' struggles are part of a larger trend affecting many brick-and-mortar retailers, as the rise of e-commerce and shifting consumer habits continue to disrupt traditional business models.
The story of Big Lots’ bankruptcy is a tale of mounting financial pressures and strategic missteps. The company, once a thriving discount retailer with a strong presence across the United States, began facing declining sales and profitability in recent years. Efforts to revitalize the brand through store remodels and expanded product offerings proved insufficient to counteract the broader challenges of the retail sector.
In September 2024, Big Lots filed for Chapter 11 bankruptcy protection, citing unsustainable debt levels and dwindling cash reserves. Initial plans called for the closure of all stores, as a potential sale to Nexus Capital Management fell through at the eleventh hour. However, a new deal emerged in late 2024, when Gordon Brothers, a global advisory, restructuring, and investment firm, teamed up with Variety Wholesalers to acquire the company.
Under the terms of the deal, Gordon Brothers assumed control of Big Lots’ assets, including its remaining stores and distribution centers. The partnership with Variety Wholesalers, a retail conglomerate with a focus on discount and variety stores, is expected to reshape Big Lots’ business strategy and streamline its operations. While the deal saved the company from complete liquidation, it came at a steep cost: hundreds of store closures, significant layoffs, and the uncertain future of its distribution network.