Big Lots Stock Is Tumbling Thursday: What's Driving The Action?

Big Lots Inc BIG shares are trading lower Thursday following reports the discount home goods retailer is exploring a potential bankruptcy filing.

What Happened: According to a Bloomberg report citing people with knowledge of the plans, Big Lots is considering filing for bankruptcy following years of declining sales.

Big Lots is also reportedly looking for investors in an attempt to avoid filing for Chapter 11. The report indicates that none of the plans have been finalized and the company’s path forward may change from what is being reported.

Big Lots ended the first quarter with $289 million of liquidity including a $200 million term loan facility. The company had $44 million in cash and equivalents and $573.8 million in long term debt at the end of the quarter. Bloomberg previously reported that Big Lots had been reaching out to prospective investors for financing in recent weeks.

See Also: US Economy Expands By 3% In Q2, Surpasses Earlier Estimates; Jobless Claims Little Moved Last Week

Big Lots is scheduled to report second-quarter financial results before the market opens on Sept. 6. The company is expected to report a loss of $3.48 per share and revenue of $1.047 billion, according to estimates from Benzinga Pro.

BIG Price Action: Big Lots shares were down 35.5% at $0.60 at the time of publication, according to Benzinga Pro.

Photo: Wikimedia Commons.