Big Lots Preparing for Bankruptcy Filing

(Reuters) – Discount home goods retailer Big Lots (NYSE:BIG) is preparing to file for bankruptcy as early as this Sunday and plans to sell its chain of stores through a court-supervised process, according to Bloomberg News.

The company will remain in operation under Chapter 11 protection and is currently in the process of securing a stalking horse bid, meaning better offers could outdo it.

Earlier today, the retailer announced the postponement of its second-quarter earnings release, initially scheduled for Sept. 6; it now expects to report results on Sept. 12.

Advisers from AlixPartners and Guggenheim Partners are assisting in the bankruptcy and sale process.

Big Lots operates around 1,400 stores and employs over 30,000 workers. The company has faced declining sales in recent quarters, putting pressure on its balance sheet. Its stock has plunged more than 90% over the past year, dropping over 22% in extended trading on Friday.

Last week, Bloomberg reported that Big Lots was considering a potential bankruptcy filing and might seek court protection soon. The company did not immediately respond to a Reuters request for comment.