Sears files for bankruptcy. 142 stores to close.

In the early hours of Monday morning, big-box retailer Sears filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, New York

"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," said Edward S. Lampert, Chairman of Sears Holdings. "While we have made progress, the plan has yet to deliver the results we have desired."

In announcing the filing the company added that it will close 142 unprofitable stores, approximately one-third of its total store count, before the end of the year. Liquidation sales at these stores are expected to begin shortly. This is in addition to the previously announced closure of 46 unprofitable stores that is expected to be completed by the end of this month.

The official announcement spoke of the filing as an opportunity to build "a sustainable structure" that will "grow profitably for the long term". However anonymous sources quoted by the New York Times suggest the move is more limited in scope, designed merely to "to cut its debts and keep operating at least through the holidays."

As part of the reorganization plan, Sears hopes to receive loans worth up to $600 million in order to help keep its shelves stocked and employees paid.

Sears was founded shortly after the Civil War, growing to incorporate the nation's largest catalog business and department store chain. However, with its prices undercut by Walmart and Home Depot and its customer-base lost to Amazon, it has struggled for years to stay afloat.

Over the last five years, the company has lost almost $6 billion, and over the last decade closed more than a thousand stores.

It is expected that a list of the stores slated to close will be released later this week.