Former BL Stores files motion to convert bankruptcy to Chapter 7 liquidation

Former BL Stores, Inc. (OTC:BIGGQ), previously known as Big Lots, Inc., filed a motion with the United States Bankruptcy Court for the District of Delaware on Friday seeking to convert its ongoing Chapter 11 bankruptcy cases to Chapter 7 liquidation. The company announced the move in a statement based on a press release included in its recent SEC filing.

The company, along with its subsidiaries, has been under Chapter 11 bankruptcy protection since September 9, 2024. On January 3, 2025, Former BL Stores completed the sale of its assets, including stores, distribution centers, and intellectual property, to Gordon Brothers Retail Partners, LLC. Since the sale, the company has continued to operate as a debtor-in-possession while managing remaining assets and winding down its estate.

According to the filing, Former BL Stores now believes that converting to Chapter 7 would serve the best interests of its creditors. If approved by the Bankruptcy Court, the conversion would be effective as early as November 4, 2025. Upon conversion, a trustee would be appointed to oversee the liquidation of remaining assets, with proceeds to be distributed according to Chapter 7 priorities. The company would no longer manage its assets or properties as a debtor-in-possession.

The company stated in its filing that it does not expect to file further reports under the Securities Exchange Act of 1934 unless directed by the Chapter 7 trustee. Additionally, Former BL Stores indicated that it does not expect to distribute any proceeds to shareholders during or after the liquidation process and believes its common shares are now worthless.

The information is based on a statement in the company’s SEC filing.

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