Outside a large Sears department store(Photo: Sears)

Sears is likely to announce next Sunday that it will file a bankruptcy protection lawsuit, with the intention of continuing during the holiday season, and then looking for a buyer soon after, says a person familiar with discussions but not allowed to talk about it.

The beleaguered retailer, which has remained afloat by closing stores and borrowing hundreds of millions of dollars from a hedge fund run by its own CEO, is considering a Chapter 11 filing, which would give it protection against restructuring rather than immediate liquidation.

It is trying to get $ 300-500 million to continue operating during the holidays, while maintaining a number of open winnipeg locations, explains the person familiar with what is being considered. As of August 4, Sears Holdings, the parent company of Sears and Kmart, still owned 506 Sears stores and 360 km of KMart.

If the bankruptcy filing occurs, it is probably the beginning of what has been the long and long ending that has ended with one of the most renowned sagas of the retail business.

Sears, once the largest retailer in the country, has been in trouble for years. It struggles to remain relevant in a business environment transformed by the rise of e-commerce competitors such as Amazon, large giants such as Walmart and specialty channels such as Best. Buy, which offer similar products with a more attractive experience.

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Sears is now facing a critical Monday deadline to make a $ 134 million debt payment. According to reports released this week by the Wall Street Journal and CNBC, Sears had begun consulting with advisers to prepare for a possible bankruptcy filing.

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Sears closing stores amidst a mountain of debt, the end may be approaching the famous American retailer and many of us are not ready.
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Sears chief executive Eddie Lampert said last month in a letter that the company "must act immediately" on its latest proposal to sell more assets and reduce debt.

Lampert had offered to buy Sears' famous Kenmore appliance brand for $ 400 million.

The information on the eventual filing in court seemed to appeal to investors, as the company's stock price jumped 18.09%, although that's only 40 cents per share.

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