It’s sad to hear about any business declaring bankruptcy, but somehow it stings a bit more when the business has been around for decades.
That has been the case for many businesses shuttering lately, with Forever21, Hooters, Joann Fabrics, and Party City being some of the most recent casualties.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
For some, declaring bankruptcy doesn’t mean the end of the business. For instance, JCPenney filed for Chapter 11 bankruptcy in May 2020, but emerged from it by December of that year after being bought by mall owners Simon Property Group and Brookfield Asset Management, Inc.
That said, new owners don’t mean the business is saved, either. JCPenney still plans to close eight more stores in 2025, which translates to an unfortunate truth: the retail industry continues to struggle, especially in an economy that feels to many to be on the brink of a recession.
Related: Formerly bankrupt giant retail chain closing more stores
One retail chain actually has a new lease on life post-bankruptcy, thanks to new ownership, and those who have shopped there over the decades may be interested to know their next visit to the chain may be different than all the ones before it.
Big Lots has a big plan for its post-bankruptcy comeback.
Image source: Shutterstock
Big Lots reveals its plan under new management
A few months after Big Lots declared bankruptcy in September 2024, it announced it had reached a deal to sell its business to Gordon Brothers Retail Partners. Gordon Brothers then turned around and sold Big Lots to Variety Wholesalers Inc., a company that owns more than 400 discount stores in the U.S. Southeast and Mid-Atlantic regions.
Variety has big plans for relaunching the retailer, including tapping into a new, higher-income demographic, according to President and CEO Lisa Seigies, who talked about what’s to come for Big Lots in an exclusive interview with Modern Retail.
One thing shoppers can expect to see dialed down in Big Lots stores is furniture, while the stores will carry more brand-name apparel from names like Tommy Hilfiger, Michael Kors, and Andrew Marc.
Related: These two industries could face mass layoffs this year
Another key part of Seigies’ plan is to take Big Lots back to its roots. When it was founded in 1967, Big Lots often offered unique deals, as owner Sol Shenk often acquired merchandise for the chain from retailers who had made too much, or who were selling off all their stock in bankruptcies.
Today, Seigies plans to lean further in that direction, making Big Lots what she calls “an everyday low price retailer” versus a place that runs periodic sales, which she said can be confusing to customers.
“Because of the way you buy closeouts and deals, you don’t always have the same product in every store, and that’s what makes it exciting,” Seigies said. “You’ll have a customer that will go from store to store for that treasure hunt.”
It’s a great time for retailers to lean into discount products
With customers feeling cautious about the effect of President Trump’s tariffs as well as rising prices at the grocery and beyond, there’s been a growing trend to only spend money on essential items.
However, one retail sector stands to benefit from the economic unsurety — and that’s discount retailers. Some, such as TJX, parent company of TJ Maxx, Marshalls and HomeGoods, have even seen their stock rise this year, leading CNBC pundit Jim Cramer to call TJX “a real winner.”
In other words, Variety’s plans for Big Lots are extremely well-timed. If it executes the plan well, it’s possible the discount retail sector may have an impressive new competitor.
Related: Jim Cramer calls this popular retailer’s stock ‘the real winner’
