Sears Holdings filed for Chapter 11 bankruptcy early Monday morning
The iconic American retailer will close 142 stores by year end and Eddie Lampert will step down as CEO but remain chairman.
Sears was down as much as 25% ahead of the opening bell.
Sears Holdings shares traded down as much as 25% ahead of Monday's opening bell after the company filed for Chapter 11 bankruptcy early Monday morning. The stock had trimmed its losses, and was down about 12% at 8:24 a.m. ET.
The iconic American retailer, which has seen sales cut in half since 2014, announced it would close 142 stores before the end of year and that CEO Eddie Lampert will step down. Lampert will remain the company's chairman.
"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," Lampert said in a statement on Monday.
"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."
After topping out at more than $122 a share in 2007, Sears' stock has lost nearly all of its value as it has struggled with shifts in consumer spending, and the rise of e-commerce, among other things.