Big Lots bankruptcy reshapes store closures, reopenings and worker claims

Big Lots entered bankruptcy on September 9, 2024, in the U.S. Bankruptcy Court for the District of Delaware, and the case later converted to Chapter 7 effective November 10, 2025, with Alfred T. Giuliano appointed trustee. Workers facing a closure or layoff need to move fast because the paperwork clock starts before the dust settles. A worker’s next steps can depend on whether a store is shutting for good, reopening under new ownership, or still tied up in the bankruptcy process.

Start with the money that should already be yours

The first thing to check is your last paycheck. Federal law does not require an employer to hand over a final paycheck immediately, even when employment ends suddenly. If your regular payday passes and wages are still missing, contact the Wage and Hour Division or your state labor department right away.

That same urgency applies to severance. The Fair Labor Standards Act does not require severance pay, so any severance usually depends on company policy, a separation agreement, or a negotiated deal. If Big Lots promised severance through an employer-sponsored plan and the money does not arrive, the Employee Benefits Security Administration may be able to help.

Save the last schedule, the final pay stub, any separation notice, and every message about payout timing. If your check is late, document the date your regular payday came and went.

File for unemployment as soon as you can

The next move is unemployment. Do not wait for the final paycheck or severance conversation to finish before opening a claim if you are eligible, because those processes move on different tracks. A layoff from a Big Lots store can trigger benefits questions quickly, especially if the store is closing permanently or your hours have been cut sharply.

Rapid Response teams can explain unemployment insurance before a layoff date and can be brought on-site. Some workers hear the news only days before the door closes, and state systems often require prompt action to avoid delays in payments.

If your hours are reduced instead of eliminated, ask whether short-time compensation is available in your state. That program may help when an employer cuts hours rather than ending jobs outright, which can matter in a retail chain where staffing can swing from week to week.

Do not skip benefits paperwork

Health coverage is the other immediate deadline. Ask exactly when your employer-sponsored health insurance ends, what COBRA or state continuation options exist, and whether any premiums are due before coverage stops. Rapid Response sessions can include health insurance options.

If you have a spouse, dependents, or a medical appointment already scheduled, put the coverage end date in writing. In a store closure, benefits paperwork often becomes the point where people lose time, because it arrives after payroll questions but before unemployment payments fully begin. Keep copies of every benefits packet, election form, and notice you receive.

Use Rapid Response and American Job Centers early

Rapid Response services can come on-site before the layoff date and can include unemployment insurance guidance, health insurance options, and access to skills-upgrading and training resources. Services vary by state and by layoff event.

Local American Job Centers are another practical stop. They can help with downsizing or closure needs, including job search support and reemployment help. For workers who want to stay in retail, shift industries, or move up through training, these centers can connect you with the state system faster than trying to piece everything together alone.

Variety Wholesalers planned to reopen 132 Big Lots stores across 14 states in May 2025, in two phases on May 1 and May 15, after acquiring 219 Big Lots locations out of bankruptcy. North Carolina, Ohio, and Pennsylvania were among the states with the most reopenings.

Know whether WARN applies to your store

If your location is closing, do not assume notice rules were handled correctly. WARN generally requires at least 60 calendar days of advance written notice for qualified plant closings and mass layoffs affecting 50 or more employees at a single site of employment. It generally applies to employers with 100 or more employees, with certain worker-count exclusions.

There are exceptions for unforeseeable business circumstances, faltering companies, and natural disasters, so not every closure will fit the same pattern. If your store lost a large number of jobs and the notice period was short, that is worth flagging when you file claims or talk to state labor officials.

Save the records that can support a claim later

A stressed worker does not need a perfect file, but you do need a safe one. Save pay stubs, schedules, time-off balances, benefits notices, layoff letters, emails, texts, and any claims paperwork tied to the bankruptcy or severance process. Keep copies of anything showing your name, store number, last day worked, rate of pay, and the date your employment ended.

Big Lots’ bankruptcy created multiple deadlines. Kroll’s Big Lots case page lists a general bar date of January 31, 2025, a government bar date of March 10, 2025, and a pre-closing administrative expense claims deadline of April 3, 2025. Even if those dates have passed, the lesson is the same: bankruptcy claims are deadline-driven, and missing paperwork can cost money later.

If you are handed a claims notice, read it carefully and save a copy before you do anything else.