The retail sector lost a significant amount of brick-and-mortar locations in 2024 as retail chains closed underperforming locations or rejected above-market leases in bankruptcy cases, leading to the closing of hundreds of retail spaces nationwide.
Rite Aid’s Chapter 11 bankruptcy, filed Oct. 15, 2023, would result in the most significant amount of store closures over the last year as the company would close more than 800 stores by the time it exited bankruptcy on Sept. 3, 2024.
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Another huge loss to the retail sector was the demise of mall teen clothing retailer Rue 21, which filed for Chapter 11 bankruptcy in May and shut down all 540 of its locations nationwide.
Related: Popular restaurant chain operator files for Chapter 11 bankruptcy
Popular mall retailer Express, which operated 540 stores, on April 22 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware to reorganize and close 95 of its stores and its 10 UpWest locations.
Discount retail chain 99 Cents Only disappeared as it in May 2024 filed for Chapter 7 bankruptcy liquidation and closed over 370 stores in Arizona, California, Nevada, and Texas.
Big Lots is closing almost 500 stores.
Big Lots closes dozens more stores
Finally, bankrupt discount home goods retailer Big Lots has been busy shutting down stores over the last month as it on Oct. 4 filed a list of additional closing stores with 46 more locations designated to close, bringing its total closures to almost 500 units.
Related: Iconic fast-food chain operator files Chapter 11 bankruptcy
Big Lots on Sept. 9 filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware seeking a sale of its assets to its stalking-horse bidder Nexus Capital Management for a $760 million bid, which includes $2.5 million in cash, debt payoff, and assumption of liabilities.
The court scheduled an auction for Oct. 18 if more than one bidder submits an offer, with a hearing to approve a sale proposed for Nov. 4.
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The retail chain, founded in 1967, initially filed a notice on Sept. 11 listing 344 store locations across the nation that it planned to close and liquidate. It filed another list on Sept. 20 designating 49 more stores to be closed, then filed a larger list on Sept. 27 consisting of 58 additional stores.
The 46 more stores listed in the Oct. 4 notice brought the total amount of store closures to 497 of the 1,392 locations the retailer operated in 48 states earlier this year before filing for Chapter 11 bankruptcy.
The Columbus, Ohio, debtor blamed high competition, Covid-19 disruption, a high interest rate environment, and a less dependable supply chain that increased operating costs as the reasons the company needed to file bankruptcy, according to court papers.
The company struggled in recent quarters, according to CEO Bruce Thorn, as a downturned economy had soured customers and hurt profits. The company had a 10.2% drop in sales to $1.01 billion during the first quarter and a loss of $132.3 million.
Big Lots is the nation’s fourth largest home goods retailer with general operating revenues of $4.7 billion in 2023.
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