Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection, as it contends with a pullback in consumer spending and soft sales.

The Columbus, Ohio-based company plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.

Big Lots, which sells furniture, home decor and other items, said in a statement Monday that high inflation and interest rates have hurt its business as consumers have pulled back on their home and seasonal product purchases, two categories the chain depends on for a significant part of its revenue.

Sales at stores open at least a year, a key gauge of a retailer’s health, have declined for nine straight quarters, according to FactSet.

Big Lots said that its performance has been improving but that its board determined during a strategic review that the proposed sale to Nexus was the right move for the business. The company had postponed the release of its second-quarter results to later this week.

The company will continue to sell goods at its stores and on its website during the court-supervised sale process. The chain added that it does plan to close some stores but didn’t specify how many or what locations would be impacted. At the end of 2023, Big Lots operated nearly 1,400 stores in 48 states.

Nexus Capital will serve as a “stalking horse” bidder in a court-supervised auction, with the proposed sale subject to higher offers or other bids that could be considered better.

If Nexus winds up as the winning bidder, the deal is anticipated to close in the fourth quarter.