After announcing the closure of more than 50 stores in California, discount retailer Big Lots filed for bankruptcy under the U.S. Chapter 11 procedure and is set to be bought by a private equity firm.

The company is known for offering a wide range of products at great prices in stores that offer a treasure hunt-like atmosphere, but as it goes bankrupt and changes ownership, it will close hundreds more stores.

“While the majority of our stores are profitable, we intend to move forward with a more focused profile,” Bruce Thorn, president and CEO of Big Lots, said in a statement Monday.

Big Lots has struggled in recent months, posting 16 consecutive quarters of comparable sales declines. CBS News reportedThe company also received a delisting notice from the New York Stock Exchange, it said on Monday, because the average closing price of its shares had been below $1 for 30 consecutive trading days.

“Like many other retail companies, the company has been negatively impacted by recent macroeconomic factors such as high inflation and interest rates that are beyond its control,” Big Lots said in a opinion Announcement of bankruptcy.

Low-end consumers, on whom discount stores like Big Lots rely heavily, are cutting back on discretionary spending in the face of rising prices resulting from recent high inflation rates, experts say.

Big Lots delayed the release of its second-quarter earnings report, but reported a net loss of $205 million for the quarter ended May 4. Net sales for the quarter were about $1 billion, down 10% from the same period last year.

According to court documents, the company has approximately $3.1 billion in debt and $3.18 billion in assets. KTLA reported.

“Prevailing economic trends have been particularly challenging for Big Lots as its core customers cut back on spending on household and seasonal products, which represent a significant portion of the company’s sales,” Big Lots said Monday.

The Ohio-based company has agreed to be acquired by Nexus Capital Management, which will assume responsibility for the company’s assets and ongoing operations.

Big Lots currently operates more than 100 stores in California and approximately 1,400 nationwide.

“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability,” Thorn said in his statement.