Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection and plans to sell its business and assets to a private equity firm.
According to the Associated Press, Big Lots cited rising inflation and interest rates as reasons for the filing, and said consumers are not buying as much as they used to in two categories in which the company is investing: household goods and seasonal products.
Same-store sales have declined for the past nine quarters, according to FactSet research.
Big Lots said its performance had improved, but its board called the management company a “stalking horse bidder” and decided to sell the company to Nexus Capital Management or the highest bidder at the end of a court-monitored auction.
The company will continue to operate and has retained $707.5 million to weather the sale, according to Reuters.
While its stores and website will remain open during the sale, some locations will be closed. Big Lots has already begun closing about 300 stores, but more closures may be announced, CNN reported.
As of the end of last year, Big Lots had about 1,400 stores in 48 states, according to the Associated Press. According to Reuters, it employed about 30,000 people.
© 2024 Cox Media Group