Big Lots filed for bankruptcy in September.

Big Lots is almost out of options since his white knight has left the table.

The off-price retailer said it does not expect to complete its previously announced sale to Nexus Capital Management, “although it continues to work to complete an alternative going concern transaction with Nexus or another party.” Aim to complete the sale by early January. In September, Big Lots filed for bankruptcy protection as part of a deal to be acquired by private equity firm Nexus Capital for about $760 million.

In parallel with its efforts, Big Lots was preparing to begin clearance sales at all remaining stores in the coming days. The retailer, which has closed hundreds of stores since September, currently operates around 950 locations.

Big Lots said it did not believe the sales would preclude sale in a going concern transaction.

“We have all worked very hard and taken every step to complete a going concern sale,” said President and CEO Bruce Thorn. “However, we remain confident that we can complete an alternative going concern transaction to protect the value of the business.” At Big Lots Estate, we have made the difficult decision to initiate the GOB process.”