Sears Holdings Corp filed for Chapter 11 bankruptcy on Monday with a plan to close 142 more stores, throwing into doubt the future of the century-old retailer that once dominated U.S. malls but has withered in the age of internet shopping.
The company listed $6.9 billion in assets and $11.3 billion in liabilities in documents filed in the U.S. Bankruptcy Court in the Southern District of New York.
Sears said it will sell assets and begin closing 142 unprofitable stores by year-end with the aim of reorganizing around a smaller platform of around 700 of its best stores.
Meanwhile, Sears and Kmart stores are open for business. The company said it is continuing to pay employees’ wages and benefits and is working with its vendors to ensure its shelves remain stocked.
“The company believes that a successful reorganization will save the company and the jobs of tens of thousands of store associates,” Sears said in a statement.
The retailer employed about 89,000 workers in the United States as of February, compared with 246,000 people five years ago.
Sears said it has received a $300 million financing package to fund its operations during the bankruptcy proceedings and was negotiating an additional $300 million.