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Five Big Lots leases heading to auction this month

Discount retailer’s bankruptcy led to store closures, waves of lease offerings

<p>A photo illustration of Big Lots’ Bruce Thorn (Getty, Big Lots)</p>

A photo illustration of Big Lots’ Bruce Thorn (Getty, Big Lots)

Big Lots is scheduled to auction off more Houston-area leases as part of its ongoing financial restructuring. 

The Columbus, Ohio-based retailer will auction five leases covering locations in northwest Houston, Katy, Pearland, Spring and Tomball, the Houston Business Journal reported. The properties collectively span over 150,000 square feet and range from $5.25 to $7.98 per square foot. 

Bidding for these leases closes Dec. 2. The auction itself will occur on Dec. 4, with the court set to declare winners on Dec. 19 following the objection process.

One of the largest properties in this wave of Big Lots lease auctions is located in Spring at 425 Sawdust Road and spans 39,495 square feet. Its lease, priced at $7.98 per square foot, extends through January 2025, with a renewal option available for an additional five years.

Another notable location, at 27816 State Highway 249 in Tomball, offers nearly 30,000 square feet at $5.25 per square foot, with two five-year renewal options.

The auction is being managed by A&G Real Estate Partners, which has already seen participation from Aldi, Dick’s Sporting Goods and other national retailers. Ollie’s Bargain Outlet, a competitor in the discount retail sector, has acquired 17 former Big Lots locations. Meanwhile, Burlington has taken 15 Big Lots leases. 

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The closures mark a significant shift for Big Lots, which once operated over 1,400 stores nationwide. The company expects to close more than 550 locations, approximately half of which have already shut down. Despite this, Big Lots reports that 70 percent of its stores were profitable prior to the closures, with the current actions targeting underperforming locations.

Future auction waves will also be managed by A&G Real Estate and will include additional Houston-area properties, such as sites in Porter and Webster. 

Big Lots is being acquired by Nexus Capital Management, an investment firm with stakes in Dollar Shave Club and Toms shoes. The lease sales are a critical element of the retailer’s bankruptcy proceedings, enabling it to streamline its operations and reposition itself for financial stability.

An additional wave of leases, including properties in Porter and Webster, will hit the auction block in January. 

Below are the five Houston-area leases slated for auction in December, compiled by the Houston Business Journal. 

  • Northwest Houston: 6138 Highway 6 North; 30,000 square feet; $6.75 per square foot; lease expiring Jan. 31
  • Katy: 923 South Mason Road; 28,000 square feet; $7 per square foot; lease ending Jan. 31, 2026
  • Pearland: 2028 North Main Street, 26,660 square feet; $5.99 per square foot; lease running through Nov. 14, 2026
  • Spring: 425 Sawdust Road, Suite A; 39,500 square feet; $7.98 per square foot; lease ending Jan. 31 with five-year renewal option
  • Tomball: 27816 State Highway 249; 29,500 square feet; $5.25 per square foot; lease expiring Jan. 31 with two five-year renewal options

— Andrew Terrell

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