Big Lots files for Chapter 11 bankruptcy protection, plans to sell assets to Nexus Capital

Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection, as it contends with a pullback in consumer spending and soft sales.

The Columbus, Ohio-based company plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.

Big Lots, which sells furniture, home decor and other items, said in a statement on Monday that high inflation and interest rates have hurt its business as consumers have pulled back on their home and seasonal product purchases, two categories the chain depends on for a significant part of its revenue.

Sales at stores open at least a year, a key gauge of a retailer's health, have declined for nine straight quarters, according to FactSet.