Big Lots Stock Tumbles on Reports Retailer Is Considering Filing for Bankruptcy
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Key TakeawaysBig Lots shares tumbled following reports the discount retailer is considering filing for bankruptcy protection in the coming weeks.The company is also looking for investments as a way to avoid filing for Chapter 11 bankruptcy, Bloomberg reported.Declining sales have hampered Big Lots' earnings and stock price.
Discount retailer Big Lots (BIG) is reportedly seeking investors to avoid filing for Chapter 11 bankruptcy protections after an extended decline in sales and several quarters of losses.The company has received at least one loan of up to $200 million so far this year, with Bloomberg reporting Big Lots has been in talks with potential investors over the last month.Executives Received 'Retention Bonuses' Amid StrugglesA regulatory filing earlier this month indicated four Big Lots executives recently received "retention bonuses" totaling over $5 million, which Bloomberg and Retail Dive reported may be an indication a bankruptcy filing could be coming, with bonuses paid to ensure key leadership doesn't leave during the process.The retailer has reportedly been working with consulting firm AlixPartners over the last year to manage costs as sales declined.Big Lots did not immediately respond to a request for comment.Big Lots shares were down over 22% in early trading Thursday at about 72 cents per share. They've lost more than 90% of their value since the start of the year. Read the original article on Investopedia.
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