The liquidation of Big Lots’ last 18 locations and Rite Aid’s final pharmacy shutdowns underscores a broader collapse driven by debt, inflation and online rivals.
Two familiar names on Main Street are reaching the end of the line. Discount chain Big Lots, unable to salvage a $760 million rescue deal, will wind down its remaining stores, while pharmacy stalwart Rite Aid prepares to shutter the few outlets left after a second Chapter 11 filing. Deadlines are tight, jobs are at risk and shoppers are losing neighborhood staples.
How Big Lots’ bankruptcy liquidation will shutter every remaining store by fall 2025
Big Lots first sought shelter under Chapter 11 on September 9 2024, betting that a sale to Nexus Capital Management would keep its doors open. When that fell apart, a December 27 agreement with Gordon Brothers Retail Partners aimed to transfer assets and safeguard employees—but that plan collapsed, too. The domino effect is brutal: all 1,392 outlets have entered liquidation, and the last 18 stores, once thought safe, are scheduled to close in the coming weeks. Remember hunting for bargain furniture there?
Rite Aid’s second Chapter 11 filing accelerates pharmacy shutdowns across the nation
Rite Aid’s first bankruptcy in October 2023 triggered roughly 800 store closures, yet mounting opioid‑related lawsuits and creditor pressure left the chain gasping for relief. Rebranded as New Rite Aid LLC, it filed again on May 5 2025, signaling a full exit. Court documents filed July 10–11 in New Jersey request permission to liquidate what remains—about three dozen pharmacies. How will rural communities fill that prescription gap?
For a snapshot of how quickly the two giants unraveled, compare their timelines below.
| Company | Key bankruptcy dates | Stores before filing | Stores now slated to close |
|---|---|---|---|
| Big Lots | Sept 9 2024 Chapter 11; Dec 27 2024 failed asset deal | 1,392 | Last 18 by fall 2025 |
| Rite Aid | Oct 2023 Chapter 11; May 5 2025 second filing; Jul 10 2025 liquidation motion | 2,100 | ≈36 by late 2025 |
Rising costs and online competition are reshaping brick‑and‑mortar retail survival odds
Why are so many banners falling at once? Analysts point to a cocktail of financial pressures:
- Inflation squeezing discretionary spending and margins
- Higher labor and borrowing costs limiting turnaround capital
- Escalating retail theft adding security expenses
- E‑commerce leaders and low‑cost imports siphoning foot traffic
Add it up and even household names—Party City, Joann Fabrics, Forever 21, Michaels—couldn’t absorb the shock. Could your favorite store be next?
Consequently, the double farewell to Big Lots and Rite Aid feels less like isolated misfortune and more like a flashing warning across the retail map. Shoppers should redeem gift cards quickly, employees should monitor severance notices, and landlords may need fresh tenants. After all, the aisles that stand empty today foreshadow the challenges tomorrow’s retailers must solve.