Discount home goods retailer Big Lots is preparing to file for bankruptcy as early as this Sunday and plans to sell its store chain under court supervision. Bloomberg News reported. He said Friday, citing people familiar with the matter.
The company is reportedly continuing to operate under Chapter 11 bankruptcy protection and is currently in the process of securing a stalking horse bid, meaning its bid could be beaten out if a better offer comes along.
The same day, the company said it would postpone its second-quarter earnings report, which was scheduled for Friday. The company is now scheduled to report its results on Sept. 12.
The company is reportedly working with advisers 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 struggled with declining sales over the past few quarters, putting pressure on its balance sheet.
The company's shares have fallen more than 90% over the past year and were down more than 22% in after-hours trading on Friday.
Bloomberg reported last week that Big Lots was considering filing for bankruptcy and could seek court protection within the coming weeks.
The company did not immediately respond to a Reuters request for comment.
