US retailer Sears has filed for Chapter 11 bankruptcy, seeking protection from its creditors, as it attempts to restructure the business after failing to make a crucial $134m (£103m) debt repayment due on Monday.
The group has total debts of more than $5.5bn, and its biggest creditor is chief executive Eddie Lampert.
The company, which also owns Kmart, said all stores and online and mobile platforms will remain open, offering “a full range of products and services” while the bankruptcy progresses.
The group said it had received commitments for $300m debtor-in-possession financing, and is negotiating a further $300m in junior debtor-in-possession funds.
Mr Lampert, who is also chairman of Sears Holdings, said: "Over the last several years, we have worked hard to transform our business and unlock the value of our assets.
“While we have made progress, the plan has yet to deliver the results we have desired, and addressing the company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.”
Mr Lampert said the Chapter 11 process would give Sears the “flexibility to strengthen its balance sheet, enabling the company to accelerate its strategic transformation, continue right sizing its operating model, and return to profitability”.
He added: “Our goal is to achieve a comprehensive restructuring as efficiently as possible, working closely with our creditors and other debtholders, and be better positioned to execute on our strategy and key priorities."
