Big Lots is closing stores and filing for bankruptcy

Discount retailer Big Lots is filing for bankruptcy as it prepares to be acquired, the company said Monday.

The Ohio-based company will be acquired by Nexus Capital Management, “who believes in our business and provides increased financial stability,” Big Lots said, and invests in such companies as Dollar Shave Club and Toms.

Big Lots said it would need to close some locations to continue operating effectively, and it will pay its vendors fully once the bankruptcy is filed.

Customers will still be able to earn and redeem rewards, as well as use gift cards and store credit cards.

“Taken together, these actions are intended to accelerate our efforts to improve our performance and strengthen our business for the future,” the company said.

The company operates nearly 1,400 stores across 48 states.