Big Lots Lacks Assets for Chapter 11 Conversion, DOJ Argues

The Department of Justice’s bankruptcy monitor opposed a request by the company formerly known as Big Lots Inc. to convert its Chapter 11 case to Chapter 7, citing a lack of assets to cover the costs of administering a liquidation.

It’s unclear whether the former discount retailer has any assets that a Chapter 7 trustee could use to cover administrative costs for the conversion, including handling and distributing funds in a claims reserve, the US Trustee said Oct. 31 in the US Bankruptcy Court for the District of Delaware.

The agency said the company accumulated more unpaid Chapter 11 administrative ...