Big Lots (NYSE:BIG), which said Friday it would delay the release of Q2 results until September 12, is reportedly preparing to file for bankruptcy as soon as Sunday and is planning to sell stores through court supervision, sources revealed to Bloomberg.
The company is reportedly setting up a “stalking horse bid” and will continue to operate while under Chapter 11 protection should a buyer materialize.
Burdened with declining sales and dwindling liquidity, reports of an impending bankruptcy have plagued Big Lots (BIG) shares since the start of the year, driving the stock price down 94% compared to a 40% loss for competitors like Dollar General (DG) and -52% for Dollar Tree (DLTR), all of which have been struggling against financially constrained low-income consumers.
Seeking Alpha was unable to reach Big Lots (BIG) for confirmation.
Shares are down more than 17% in after-hours trading, erasing a 9% gain during Friday’s regular session.
