Struggling Big Lots prepares to file for bankruptcy, sell stores: report

Big Lots, a retailer of budget home goods, is preparing to file for bankruptcy as early as Sunday and plans to sell its chain of stores in a court-supervised proceeding, Bloomberg News reported Friday, citing people familiar with the situation.

As stated in the report, the company will continue to operate under Chapter 11 protection and is currently in the process of securing a takeover bid, meaning that bid could be outbid if better offers come along.

Earlier in the day, the retailer announced the postponement of its second-quarter earnings release, which was scheduled for Friday. The company now expects to release results on Sept. 12.

Big Lots store in Wisconsin. — Big Lost has postponed its second-quarter earnings release until next week. Above, the Wisconsin store. Gary C. Klein/USA TODAY NETWORK-Wisconsin/USA TODAY NETWORK

According to the report, the company is working with advisors from AlixPartners and Guggenheim Partners on the bankruptcy and sale process.

Big Lots, a retailer with about 1,400 stores and more than 30,000 employees, has been struggling with declining sales over the past few quarters, putting pressure on its balance sheet.

Store Clearance Signs — Big Lots stock has fallen more than 90% over the past year and was down more than 22% in Friday’s evening session. Michelle Eve Sandberg/Shutterstock

The company’s shares have fallen by more than 90% over the past year, and on Friday’s trading session they lost more than 22%.

Last week, Bloomberg reported that Big Lots was considering filing for bankruptcy and could seek court protection in the coming weeks.

The company did not immediately respond to Reuters’ request for comment.