Major Discount Retailer To File For Bankruptcy

Discount retail chain Big Lots is preparing to file for bankruptcy.

The retailer intends to sell its chain of stores through a court-supervised process.

New: Big Lots is preparing to file for bankruptcy and plans to sell its chain of stores.

What is your response? pic.twitter.com/9P0pDQ00bQ

— The Calvin Coolidge Project (@TheCalvinCooli1) September 6, 2024

Big Lots, which employs over 30,000 people, has experienced declining sales in recent years.

Big Lots going from an all-time high to bankruptcy in about three years is truly impressive.

Shows the often ridiculous relationship between market expectations and underlying business fundamentals.

Been covering this in The Daily Rip most of the way down, wild story lol… pic.twitter.com/rtPS32n7xi

— Tom Bruni, CPA, CMT (@BruniCharting) September 6, 2024

Bloomberg reports:

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.

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Struggling Big Lots preparing bankruptcy filing, will sell stores: report https://t.co/tgDYO1erOO pic.twitter.com/iGShGNrTo6

— New York Post (@nypost) September 6, 2024

JUST IN: Big Lots is reportedly considering filing for chapter 11 bankruptcy

Stock is down 27% in the pre-market… pic.twitter.com/WXfkWdZQ0x

— Triple Net Investor (@TripleNetInvest) August 29, 2024

Per Reuters:

Earlier in the day, the retailer announced the postponement of its second-quarter earnings release, which had been scheduled for Sept. 6. The company now expects to report results on Sept. 12.

The company has been collaborating with advisers from AlixPartners and Guggenheim Partners on the bankruptcy and sale process, according to the report.

Big Lots, a retailer operating around 1,400 stores and employing over 30,000 workers, has been grappling with declining sales over the past few quarters, putting pressure on its balance sheet.

Its stock has plunged more than 90% in the past year and dropped more than 22% in extended trading on Friday.

Last week, Bloomberg reported that Big Lots was mulling a potential bankruptcy filing and may seek court protection within the coming weeks.

This is a Guest Post from our friends over at 100 Percent Fed Up.

View the original article here.