Consumer
Big Lots Prepares Bankruptcy Filing With Plans to Sell Stores
- Retailer intends to have stalking horse bidder lined up
- Discount chain has suffered declining sales, losses for years
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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.