Big Lots is reportedly weighing the possibility of filing for bankruptcy due to declining sales.
The discount retailer is considering filing for bankruptcy as a potential option, Bloomberg reported late Wednesday, citing people with knowledge of the plans.
A source familiar with the situation told the outlet that Big Lots is trying to dodge Chapter 11 by hunting for investors.
A Big Lots store in Carle Place, New York, on July 23, 2024. (Howard Schnapp/Newsday RM via Getty Images / Getty Images)
Bloomberg’s report came about two-and-a-half months after the discount retailer flagged "substantial doubt about the Company’s ability to continue" in a mid-June Securities and Exchange Commission (SEC) filing amid an inflation-related pullback in its shoppers’ spending.
Big Lots said in the same filing that it "has incurred net losses and used cash in operating activities in 2022, 2023, and the first quarter of 2024."
FOX Business reached out to Big Lots for comment.
FOX Business' Pilar Arias contributed to this report.