Big Lots announced that it has filed for Chapter 11 bankruptcy protection and entered into an agreement to be acquired by Nexus Capital Management LP.

The discount retailer said the move will allow it to restructure its operations and emerge under new ownership.

Big Lots said it will continue operating its stores and online business throughout the bankruptcy process.

The company cited recent economic difficulties, including high inflation and interest rates, as contributing factors to its decision. These factors, Big Lots said, have led to decreased customer spending on home and seasonal products, a core part of its business.

"Like many other retail businesses, the Company has been adversely affected by recent macroeconomic factors," the company said in a statement.

As part of the restructuring, Big Lots will be evaluating its store footprint and expects to close some locations.

"Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint," said President and CEO Bruce Thorn.

Big Lots also announced that it has received notice from the New York Stock Exchange that its common stock price has fallen below the exchange's listing requirements. However, this does not result in the immediate delisting of the company's shares.

Under the terms of the agreement, Nexus Capital will acquire substantially all Big Lots' assets and ongoing business operations. The deal is subject to court approval and could potentially be challenged by other bidders in a court-supervised auction process.