Big Lots closing up to 40 stores as it mulls bankruptcy. There are 102 Ohio locations

Columbus area discount retailer Big Lots will close between 35 and 40 stores this year as it mulls bankruptcy, citing “elevated inflation” and decreases in consumer spending.

It marks the latest chain with a presence in Ohio to file for bankruptcy. Others include Red Lobster, Rite Aid, and Bed Bath & Beyond.

Shrimp is still on the menu:Red Lobster closes 9 Ohio restaurants. Here are the 31 Ohio locations that remain open

“In 2024, the U.S. economy has continued to face macroeconomic challenges, including elevated inflation, which has adversely impacted the buying power of our customers,” a financial disclosure from Big Lots states.

Story continues below photo gallery

A spokesperson for Big Lots did not immediately respond to an email seeking comment and information on which stores may be closing. The potential bankruptcy was first reported by the New York Post.

Big Lots had planned to open three stores in the past year, but now plans to close between 35 and 40 across the nation. There are 102 Big Lots stores in Ohio.

Where are Big Lots in Ohio?

Ohio is No. 4 in the nation for the number of Big Lots stores with 102, behind Florida (106), California (109) and Texas (116). The discount chain has two locations in Akron, one in Canton, five in Cincinnati and five in Columbus, according to its website.

Additionally, Big Lots operates several stores in Toledo and Cleveland and has many locations near Ohio's biggest cities, including Dublin, Grove City, Blue Ash, Milford, Middletown, Miamisburg, Mentor and Beachwood.

Big Lots also has 40 locations in Kentucky, including in Covington and Newport near Cincinnati.

Surge in bankruptcies

June saw the highest level of bankruptcies since the COVID-19 pandemic in early 2020, according to a report by the Wall Street firm S&P Global.

This year’s bankruptcies have totaled 346, “higher than any comparable figure in the prior 13 years,” S&P said.

“High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies,” the note states.

From March 2022 to July 2023, the Fed hiked its key interest rate from near zero to a range of 5.25% to 5% — a 23-year high — in an effort to tame a pandemic-induced inflation spike.

Recent reports underscore that inflation eased notably in May, with a key measure the Fed follows closely at 2.6%. That’s above the Fed’s 2% goal but the lowest since March 2021 and down from a peak of 5.6% in mid-2022.

But Jerome Powell, who chairs the Federal Reserve, has maintained a cautious stance about lowering rates since inflation unexpectedly picked up in the first quarter following a significant slowdown last year.