Big Lots Files For Chapter 11 Bankruptcy

Big Lots sought court protection after suffering from years of declining same-store sales and closing locations.

Big Lots incorporated has filed for bankruptcy protection and plans to sell the firm’s assets.

The discount retailer said it filed for Chapter 11 in Delaware. It listed assets and liabilities of $1 billion to $19 billion in its court petition.

Chapter 11 allows the company to continue operating while it works out a creditor repayment plan.

Big Lots sought court protection after suffering from years of declining same-store sales and closing locations.

It entered a sale agreement with Nexus Capital Management LP, which is a private equity investor. Under the agreement, Nexus will only buy the business if no higher or better offers come from other parties.

Big Lots anticipates the transaction to close during the fourth quarter this year.