Speculation is swirling around Big Lots after Bloomberg reported that the company might seek bankruptcy protection.
Bloomberg added that, as a bankruptcy alternative, Big Lots is simultaneously seeking new investors, citing a source familiar with the search.
Bloomberg reported earlier in August that Big Lots has offered retention bonuses to key executives, which has helped fire speculation about a bankruptcy move. According to a filing with the United States Securities and Exchange Commission, the executives offered retention bonuses were president and CEO Bruce Thorn; Jonathan Ramsden, executive vice president, chief financial and administrative officer; Ronald Robins, executive vice president, chief legal and governance officer, general counsel and corporate secretary; and Michael Schlonsky, executive vice president, chief human resources officer. The bonuses ranged from $3.2 million to $561,000.
Big Lots recently announced that it would close more stores as part of a new agreement with creditors. Big Lots is looking to maintain the business as it repositions to offer more closeouts, overruns and related bargain merchandise.
The company has suffered from poor financial results including in the first quarter when it posted an adjusted net loss of $132.3, or $4.51 per diluted share, versus $98.7 million, or $3.40 per diluted share, in the year-prior period. It’s comparable sales slipped 9.9% in the quarter year over year.
Big Lots, at press time, did not respond to a request for comment by HomePage News.
