WHITE PLAINS, NY - Sears Holdings Corp., the 125-year-old retailer known for its Kenmore and DieHard brands, has collapsed into bankruptcy under pressure from too much debt and too few shoppers.

The company filed for Chapter 11 protection from creditors with the U.S. Bankruptcy Court in White Plains, New York, listing more than $10 billion in debts and more than $1 billion in assets.

Sears and its Kmart stores plan to stay in business with help from $600 million in new loans, but a turnaround plan outlined in a separate statement envisions Sears closing and selling dozens of stores, with Eddie Lampert, the biggest shareholder, stepping down immediately as chief executive officer.

For now, Sears will be run by an Office of the CEO, and independent directors will oversee the restructuring.

While Sears and Kmart stores and the online business will remain open, the company will shut 142 unprofitable outlets near the end of the year, on top of 46 unprofitable stores already slated for closure by November.

Lampert, who remains chairman, acknowledged in the statement that turnaround efforts so far have fallen short.

Sears Holdings plans to close 142 stores before the end of the year, including 17 stores across California, one Kmart in Riverside, and one in Ontario.

Story Date: October 16, 2018