UPDATE 1-Investment firm Mill Road urges Big Lots to sell itself

(Adds Big Lots’ response, share movement)

March 15 (Reuters) - Investment firm Mill Road Capital has urged Big Lots Inc’s board to pursue a sale of the discount home furnishing chain, a regulatory filing showed on Tuesday, sending the company’s shares up nearly 15%.

Mill Road, which disclosed a 5.1% stake in the retailer, said a sale could maximize shareholder value at an assumed price of $55 to $70 per share, which represents a premium of 72% to 119% to Big Lots stock’s Monday’s close.

Big Lots declined to comment on Mill Road’s push for the company’s sale.

The company’s shares have fallen nearly 18% this year, as the spread of the Omicron coronavirus variant hurt customer traffic at its stores and surging transportation costs pinched its profit margins. (Reporting by Praveen Paramasivam and Uday Sampath in Bengaluru; Editing by Shailesh Kuber)