Big Lots ‘to sell off chain of stores nationwide’ as retailer ‘plans to file for bankruptcy in days’ after sales plummet

BIG Lots is reportedly set to file for bankruptcy as early as Sunday, with plans to sell its stores through a court-supervised process.

The retail giant will reportedly continue operating under Chapter 11 protection and is said to be in the process of securing a stalking horse bid – the first bid placed on a bankrupt company’s assets before a public auction.

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It comes after the retailer announced the release of its second-quarter earnings release had been pushed back from September 6 to 12.

The chain already announced earlier this year it would be closing 315 stores across 35 states .

Now, the possible shutting down of every store across the nation would affect over 30,000 workers in total.

It would also close the remaining 1,400 stores around the country.

Big Lots has reportedly been working closely with financial advisors, AlixPartners and Guggenheim Partners, to work through the bankruptcy process and ultimately the sale.

In just one year, the retailer’s stock has plummeted by over 90%, effectively putting the chain in panic mode.

At first, Big Lots thought they would be able to dig themselves out of the hole they were in.

The chain invested over $11 million in Halloween items , promising to be the “nation’s largest discount Halloween retailer” for customers this year.

They even teased significant sales, deeming the prices as the “biggest extreme bargain Halloween closeout ever.”

Big Lots CEO, Bruce Thorn, also announced that “truckloads” of Halloween items were arriving weekly, according to a press release.

As a part of this blowout, all the merchandise in-store will feature discounts between 50% and 70% off.

This includes both indoor and outdoor decorations, costumes for adults, kids, and pets, trick-or-treat supplies, and even a wide variety of apparel

All of the merchandise will feature discounts between 50% and 70% off.

“Our ongoing efforts to find high-demand products at unbeatable prices are accelerating,” Thorn said.

“This new closeout deal significantly increases our total offering for Halloween, making this our biggest Halloween ever.”

But before the season even officially kicked off, reports surfaced of the chain’s possible bankruptcy filing.

The company has faced significant financial woes, blaming inflation, citing a decrease in sales and about $573 million in long-term debt.