Discount home goods retailer Big Lots 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 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 Friday. 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.