Bloomberg reports: Discounter Big Lots considers filing for bankruptcy due to declining sales

(Reuters) – Discount household goods retailer Big Lots is considering filing for bankruptcy and could seek court protection within weeks, Bloomberg reported on Wednesday, citing people familiar with the plans.

According to the report, the company is also looking for investors to avoid Chapter 11 bankruptcy.

Big Lots did not immediately respond to a Reuters request for comment. Shares fell 27 percent in later trading and have lost nearly 88 percent of their value this year.

Big Lots is trying to bolster its liquidity, which has come under pressure over the past two years due to declining sales as high interest rates dampened demand for expensive consumer goods.

The plans are not yet final and Big Lots' path could still change, the report said.

In June, the company expressed doubts about its ability to continue as a going concern after reporting a larger-than-expected quarterly loss and saying 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 net cash of $289 million and cash and cash equivalents of $44 million.

(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)