Discount retailer Big Lots mulling bankruptcy filing as sales decline, Bloomberg reports
2024.08.28 19:03
(Reuters) – Discount home goods retailer Big Lots (NYSE:) is considering a potential bankruptcy filing and may seek court protection within weeks, Bloomberg reported on Wednesday, citing people familiar with the plans.
The company is also looking for investors in a bid to avoid Chapter 11, according to the report.
Big Lots did not immediately reply to a Reuters request for comment. Its shares fell 27% in extended trading and have lost nearly 88% of their value this year.
Big Lots is attempting to shore up its liquidity that has been pressured by a sales decline over the last two years as high interest rates hurt demand for big-ticket discretionary purchases.
The plans are not final and Big Lots’ path may change, the report said.
In June, the company raised going-concern doubts after posting a bigger-than-expected quarterly loss and said it may not be able to meet its credit and loan obligations in the near future.
At the end of the first quarter, the company had $289 million of net liquidity and $44 million in cash and cash equivalents.
