Reports indicate that Big Lots has filed for Chapter 11 bankruptcy protection. The Ohio-based company plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.

In a press release, Big Lots stated, "To facilitate the transaction, we initiated voluntary Chapter 11 proceedings, which will make the proposed transaction subject to higher or otherwise better offers, as well as Court approval. We also intend to continue optimizing our store footprint during the process. Though most of our stores are profitable, and we are taking every step possible to improve the profitability of all our stores, we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers."

Sales for the stores open at least a year have declined for nine straight quarters.

During the court-supervised sale process, Big Lots will continue to sell goods at its stores and on its website. The chain added that it plans to close some stores but doesn't specify how many or what locations would be impacted. At the end of 2023, Big Lots operated nearly 1,400 stores in 48 states.

In July, the company said it was planning on closing up to 315 stores to "aggressively address underperforming stores."

Big Lots operates 1,389 stores across the country.