After announcing the closure of more than 50 stores in California, the discount retailer Big Lots has filed for Chapter 11 bankruptcy and will be purchased by a private equity firm.

Known for carrying a wide array of products at budget prices sold in stores that offered a treasure-hunt atmosphere, the company will shut down hundreds of more stores as it navigates bankruptcy and new ownership.

"Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint,” Big Lots President and Chief Executive Bruce Thorn said in a statement Monday.

Big Lots has been struggling in recent months and has posted 16 consecutive quarters of comparable sales declines, CBS News reported. The company also received a delisting notice from the New York Stock Exchange, it announced Monday, because the average closing price of shares was less than $1 over a consecutive 30 trading-day period.

“Like many other retail businesses, the Company has been adversely affected by recent macroeconomic factors such as high inflation and interest rates that are beyond its control,” Big Lots said in a statement announcing the bankruptcy.

Lower-end consumers, whom budget-friendly stores like Big Lots rely on heavily, are cutting back on voluntary spending in the face of rising prices caused by recent high inflation rates, experts say.

Big Lots postponed the release of its second quarter earnings report , but reported a net loss of $205 million in the quarter ending May 4. Net sales of around $1 billion in that quarter marked a 10% decrease compared with the same period last year.

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

“The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company's revenue,” Big Lots said Monday.

The Ohio-based company has agreed to be bought out by Nexus Capital Management, which will acquire the company’s assets and ongoing business operations.

Big Lots currently operates more than 100 stores in California and roughly 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.

Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights.

This story originally appeared in Los Angeles Times.