Sears Holdings made it official early Monday morning, announcing the retailer has filed for Chapter 11 bankruptcy protection.
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Banks have agreed to provide Sears with a bankruptcy loan.
Sears says that Eddie Lampert’s hedge fund will provide $300 million in bankruptcy financing.
Lampert will also stepdown as CEO, but remain Chairman.
According to a court filing, Sears Holdings lists assets of $1 billion to $11 billion and liabilities of $10 billion to $50 billion.
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Sears had a debt payment of $134 million due on Monday.
Sears and Kmart stores and their online and mobile platforms will remain open for business, according to a company statement.
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According to the plan, Sears Holdings will close 142 unprofitable stores near the end of the year.
Over the coming months, the company expects to market and sell certain company assets.
This is a developing story, check back for updates.
