Big Lots, Party City Latest to Announce Closures; Stores in Georgia Among Those Shutting Down

After struggling financially, two major retail chains are closing their doors, with Big Lots and Party City announcing widespread closures.

Big Lots, the discount retailer, said this week that it would shut down all of its locations after a deal to save the company from bankruptcy fell through. The company, which has at least 31 stores across Georgia, filed for bankruptcy in September.

In a statement, Big Lots President and CEO Bruce Thorn explained that a potential sale to Nexus Capital Management, a California-based investment firm, had been approved by the court in November. However, a subsequent inventory valuation was lower than expected, making the sale economically unfeasible. As a result, Big Lots began the process of liquidating its stores, marking a significant decline for the retailer, which had hoped to continue operations under new ownership.

“We have worked extremely hard and took every step to complete a going concern sale,” Thorn said in the release, referring to a transaction where a business continues operating. Despite efforts to protect the value of the company, Big Lots is moving forward with its closure plans.

Meanwhile, Party City, the party supply chain, is also winding down its operations. The company, which has 23 locations in Georgia, filed for Chapter 11 bankruptcy in early 2023 due to significant debt, rising costs, and increased competition. Three months after emerging from bankruptcy, Party City announced it would be closing all of its stores, marking the end of its four-decade run in business. CEO Barry Litwin informed employees that Friday would be their final day, and they would not receive severance pay, with benefits ending when the company shuts down.

Consumers have watched the collapse of numerous businesses and closures such as TGI Fridays, Red Lobster, Rue21, and Express, filing for bankruptcy protection this year. In addition, drugstore chains like CVS, Walgreens, and Rite Aid have announced hundreds of store closures, and Macy’s and Wayfair have both cut substantial portions of their workforce.