Parent company of Sears, Kmart prepares for possible liquidation

Philip Rozenski/iStock(NEW YORK) — Sears and Kmart are expected to become the latest victims of the nation’s changing shopping habits pending a last minute save.

Sears Holdings Corp, the parent of Sears and Kmart, will ask a federal bankruptcy judge in New York whether it can move to liquidation after failing to reach a buyer, casting doubt on the survival of a department store that has been a fixture in the United States for more than a century.

Sears filed for bankruptcy protection on Oct. 15, 2018. An auction for Sears’ assets is not due until Jan. 14.

Kmart and Sears merged in November 2004, creating the new retail company Sears Holdings. Sears was the third largest retailer in the U.S. at the time.

A hearing in the case is scheduled for Tuesday.

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