Sept 6 (Reuters) - Discount home goods retailer Big Lots ( BIG )

is preparing to file for bankruptcy as early as this

Sunday and plans to sell its chain of stores through a

court-supervised process, Bloomberg News reported on Friday,

citing people familiar with the situation.

The company will remain in operation under Chapter 11

protection, the report said, and is currently in the process of

securing a stalking horse bid, which means that the bid could be

outdone if better offers emerge.

Earlier in the day, the retailer announced the postponement

of its second-quarter earnings release, which had been scheduled

for Sept. 6. The company now expects to report results on Sept.

12.

The company has been collaborating with advisers from

AlixPartners and Guggenheim Partners on the bankruptcy and sale

process, according to the report.

Big Lots ( BIG ), a retailer operating around 1,400 stores and

employing over 30,000 workers, has been grappling with declining

sales over the past few quarters, putting pressure on its

balance sheet.

Its stock has plunged more than 90% in the past year and

dropped more than 22% in extended trading on Friday.

Last week, Bloomberg reported that Big Lots ( BIG ) was mulling a

potential bankruptcy filing and may seek court protection within

the coming weeks.

The company did not immediately respond to a Reuters'

request for comment.