Big Lots filed for bankruptcy and closed all stores in 2024

Big Lots, the discount home goods and furniture retailer, filed for Chapter 7 bankruptcy in September 2024 and liquidated all remaining stores by early 2025. If you held a Big Lots credit card, had rewards points, or had merchandise on layaway, the closure affects how you recover money or use those benefits.

The store's closure was sudden for many customers. Unlike a Chapter 11 reorganization where a company tries to restructure and continue operating, Chapter 7 means the company sold off inventory and shut down completely. This matters because it changes who you contact and what options remain available to you.

Key Takeaways

  • Big Lots credit card holders should contact Comenity Bank (the card issuer) directly about outstanding balances, not Big Lots itself, since the company no longer operates.
  • Rewards points and store credit became worthless when Big Lots closed, and the company did not convert them to cash or transfer them to other retailers.
  • Merchandise on layaway was typically returned to inventory and sold during liquidation; you should contact the bankruptcy trustee if you paid a deposit.
  • If you made a purchase with a Big Lots credit card shortly before closure and the item never arrived, you can dispute the charge with your card issuer.
  • The bankruptcy court assigned a trustee to handle creditor claims; you can file a claim if Big Lots owes you money for returned merchandise or deposits.

What to do if you held a Big Lots credit card

The Big Lots credit card was issued by Comenity Bank, not by Big Lots itself. When Big Lots closed, your credit card account did not disappear — it transferred to Comenity's management. If you still carry a balance, you owe Comenity, and they will continue to send statements and expect payment.

Contact Comenity Bank directly at the phone number on your credit card statement or through their website. Do not try to reach Big Lots. Comenity can tell you your current balance, whether any pending transactions posted, and your payment options. If you dispute a charge because merchandise never arrived or was defective, Comenity handles the dispute process, not Big Lots.

If you had a promotional financing offer (such as 12 months interest-free), check your most recent statement to see whether the promotion is still active. Some promotional terms end when the merchant closes; others remain in effect. Comenity can clarify what applies to your account.

Rewards points and store credit are lost

Big Lots rewards points and store credit have no value now that the company has closed. The company did not convert points to cash, transfer them to partner retailers, or extend them as refunds. If you had accumulated points or held a Big Lots gift card, those are gone.

This is a standard outcome in retail liquidations. Rewards programs are contractual benefits tied to the merchant's operation, and when the merchant ceases to exist, the program ends. You cannot redeem points for merchandise, discounts, or cash. No government program or bankruptcy process restores rewards after a store closure.

Layaway purchases and deposits

If you had merchandise on layaway at Big Lots when the stores closed, the items were returned to inventory and sold during the liquidation process. You did not receive the merchandise, and Big Lots did not refund your layaway payments automatically.

To recover a layaway deposit, you must file a claim with the bankruptcy trustee. The trustee is the court-appointed official who manages the liquidation and distributes remaining assets to creditors. You can find the trustee's contact information and claim important date on the bankruptcy court's website for the district where Big Lots filed (the Southern District of Ohio). Claims must be filed by the important date stated in the bankruptcy notice; missing the important date means you lose the right to recover the money.

When you file a claim, include your receipt or proof of payment, the amount you paid, and the date of the layaway. The trustee will review all claims and distribute available funds according to bankruptcy law. Unsecured claims like yours are paid after secured creditors and administrative costs, so recovery is not certain and may be partial.

Disputed charges and items that never arrived

If you made a purchase with your Big Lots credit card and the item never arrived, or arrived damaged, you can dispute the charge with Comenity Bank. The card issuer has a legal obligation to investigate disputes even though the merchant no longer exists.

Contact Comenity and explain what happened. Provide your order number, the date of purchase, and a description of the problem. Comenity will ask for documentation — such as a tracking number showing non-delivery, or photos of damage. The bank will then attempt to contact Big Lots or its liquidation trustee to resolve the dispute. If Big Lots cannot be reached or does not respond, Comenity will typically credit your account.

You have up to 60 days from the date the charge appeared on your statement to file a dispute. Do not wait; contact Comenity as soon as you realize the item will not arrive.

Filing a claim in the bankruptcy

If Big Lots owes you money — for a returned item that was not refunded, a deposit, or merchandise you paid for but never received — you can file a claim in the bankruptcy case. This is different from disputing a credit card charge; it is a formal claim against the company's remaining assets.

The bankruptcy trustee's office will have published a important date for claims, usually 60 to 90 days after the bankruptcy filing. You can find this important date and the trustee's mailing address on the U.S. Bankruptcy Court website for the Southern District of Ohio, or by calling the court directly. Send a written claim that includes your name, address, the amount owed, the date of the transaction, and any supporting documents (receipts, emails, order confirmations).

Be aware that filing a claim does not may provide payment. The trustee will prioritize claims according to bankruptcy law. Unsecured claims (like yours) are paid only after secured creditors, employees, and administrative costs are covered. If the liquidation does not generate enough money, you may receive nothing or only a partial refund.

Tax implications of rewards and gift cards

The loss of rewards points or gift card balances does not create a tax deduction for you. Rewards points are considered discounts on purchases you made in the past, not separate property with a recoverable value. The IRS does not allow you to claim a loss when a retailer closes and points expire.

If you received a settlement or refund from the bankruptcy trustee, that money is generally not taxable income because it represents a return of your own money, not a gain. However, if the trustee pays you more than you originally paid (which is unlikely), the excess could be taxable. Keep records of any payments you receive from the bankruptcy estate.

Frequently Asked Questions

Can I still use my Big Lots credit card at other stores?

Yes. Your Comenity Bank credit card is a Visa or Mastercard that works anywhere those cards are accepted. The closure of Big Lots does not affect the card itself or your ability to use it elsewhere. You still owe any balance you carry, and Comenity will continue to charge interest if you do not pay in full.

What if I have a Big Lots gift card?

Big Lots gift cards have no value now that all stores have closed. The company did not convert gift cards to cash or transfer them to other retailers. You cannot recover the balance. If you paid for a gift card with a credit card, you could attempt to dispute the charge with your card issuer, but the merchant no longer exists to contest the dispute.

Do I have to pay off my Big Lots credit card balance?

Yes. Your credit card account is with Comenity Bank, not Big Lots. The store's closure does not erase your debt. If you stop paying, Comenity will report the delinquency to credit bureaus, and your credit score will suffer. Comenity may also pursue collection action. Contact them to set up a payment plan if you cannot pay the full balance when ready.

How long do I have to file a claim in the bankruptcy?

The important date varies depending on the specific bankruptcy case, but it is typically 60 to 90 days after the filing date. Check the U.S. Bankruptcy Court website for the Southern District of Ohio or call the court to confirm the exact important date for Big Lots' case. Missing the important date means you lose the right to file a claim.

Will I get my money back from a layaway claim?

It depends on how much money the liquidation generated and how many other claims were filed. Unsecured claims like layaway deposits are paid last, after secured creditors and administrative costs. You may receive full payment, partial payment, or nothing. The trustee will notify you of the outcome after reviewing all claims.