(Bloomberg) -- Discount home goods retailer Big Lots Inc. is preparing to file for bankruptcy as soon as Sunday, and plans to sell its chain of stores via a court-supervised process, according to people familiar with the plans.
The company will continue to operate under Chapter 11 protection, the people said, and is in the process of lining up a so-called stalking horse bid, meaning it’s subject to better offers should any materialize. The company has been working with advisers from AlixPartners and Guggenheim Partners on the bankruptcy and sale process.
Representatives for Big Lots and AlixPartners didn’t respond to requests seeking comment on the bankruptcy plans, while Guggenheim declined to comment.
Big Lots, which has around 1,400 stores and employs over 30,000 people, has suffered from declining sales for years, including in recent quarters as rising inflation squeezed the wallets of its budget-conscious shoppers. Its share price has plunged to around $0.50, after peaking above $72 in 2021.
Big Lots inked a sale and leaseback deal for a distribution center and 26 owned stores with affiliates of Blue Owl Capital last year that served to raise a quick $318 million, but also added to its costs.
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