Discount retailer Big Lots will file for bankruptcy in preparation for the acquisition, the company announced Monday.
The Ohio-based company is being acquired by Nexus Capital Management, which Big Lots said “believes in our business and adds financial stability to our business,” and has invested in companies including Dollar Shave Club and Tom’s.
Big Lots said it needed to close some stores to continue operating efficiently and that it plans to pay its store owners in full after filing for bankruptcy.
Customers can still earn and redeem rewards and use gift cards and store credit cards.
“Collectively, these measures are intended to accelerate our efforts to improve our performance and strengthen our business for the future,” the company said.
The company operates approximately 1,400 stores in 48 states.