The company will continue to operate under Chapter 11 protection, the people said, and is in the process of lining up a so-called stalking horse bid, meaning it's subject to better offers should any materialize. The company has been working with advisers from AlixPartners and Guggenheim Partners on the bankruptcy and sale process.

—

Big Lots, which has around 1,400 stores and employs over 30,000 people, has suffered from declining sales for years, including in recent quarters as rising inflation squeezed the wallets of its budget-conscious shoppers. Its share price has plunged to around $0.50, after peaking above $72 in 2021.