Sears has finally gone bankrupt

The day has finally come🅷: Sears has gone bankrupt.

The once-dominant retail icon — whose Sears and Kmart chains have shrunk drastically and grown dilapidated after more than a dozen years under the 𓂃control of billionaire Eddie Lampert — filed for Chapter 11 bankruptcy protection early Monday.

After nearly a week of intense negotiations, Sears’ lenders agreed to supply a $300 million loan to keep shelves stocked and employees pa🔜id through the holidays, although the retailer is still negotiating for as much as $300 million more.

Lampert’s hedge fund ESL Investments said it “will continue to press forward with the goal of seeing Sears emerge from this process positioned for success as a smaller, less indebted retailer in an integrated retail environment.”

It’s unclear, however, whether the iconic r💙etail chain will survive beyond the Christmas season after getting whittled down to about 700 locatio⛎ns. That’s versus more than 3,500 before Lampert, a hedge-fund manager, merged the retailers in 2005 to form Sears Holdings and made himself chairman and chief executive.

“Sears has been under a hail of fire for some time with a lot of questions about its CEO and h𓆉is real intentions,” said Eric Schiffer, chief executive of Patriarch, an LA-based private equity firm.

“I think ဣit’s unlikely that it’ll survive beyond the filing. They haven’t figured out how to merchandise.”

Under the reorganization plan, 142 stores will close by the end of the year while Lampert weighs a bid to keep 300 locations runninꦇg beyond Christmas, sour🅷ces said. The fate𝔍 of 250 additional stores will hang in the balance while the rest are shuttered by early next year.

“Some of the stores have to be decent,” said Kenneth Rosen, a bankruptcy lawyer with Lowenstein Sandler. “I’d be🌠 surprised if they were all losers, and I’d bet that Eddie Lampert knows whi♔ch ones they are.”

Lampert is stepping down as chief executive and is being replaced by an “office of the CEO” comprised of several current executives including chief financial officer Robert Riecker. Lampert will remain chairman of the board.

Restructuring expert Mohsin Meghji, managing partner of M-III Partners, was appointed chief restructuring officer. He’ll report to a newly formed restructuring committee. In addition, a new independent director with restructuring experience was added, William Transier, who heads an eponymous consulting firm. Transier is the second independent director added this month, coming on the heels of Alan Carr’s appointment.

Nevertheless, insiders say some lenders remain 𓆉skeptical whether any game plan to keep Se💧ars and Kmart alive, even in downsized form, would be more profitable than simply liquidating both chains and getting out for good.

The filing came as Sears Holdings faced a $134 million debt payment th🍰at was coming due on Monday — a payment that Lampert refused to m🃏ake, insiders said.

That’s despite the fact that Lampert has repeatedly hived off the company’s assets to keep the lights on. Last year, he sold the company’s Craftsman t𓆏ools brand to rival Black & Decker for $900 million.

In 2015, Sears raised $2.7 billion by selling 200 stores to a Lampert-controlled company called Seritage, which has since leased some locations back to Sears while leasing out the balance to other retailers, r🦩estaurants, bowling alleys and residential developers.

With about a quarter of Sears’ remaining operational assets available to creditors, among the most valuable is the Kenmore ap♍pliance brand, which Lampert offered to buy earlier this year for $400 mi🅷llion.

Lampert also had offered to buy Sears’ home services division for an additional $80 million, as well some 200 stores valued atᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ $1.5 billion for which Sears owns 🍨the real estate, according to a source with knowledge of Sears’ assets.

But the Sears board earlier this month ♔rejected Lampert’s offer, fearing creditors would s✤ue over what could be seen as a sweetheart deal.

In addition to controlling half of Sears’ stock, Lampert and his hedge fund, ESL Investmentꦫs, own about 40 percent of company debt.

The c🎐ompany listed $6.9 billion in assets 💃and $11.3 billion in liabilities in documents filed in the U.S. Bankruptcy Court in the Southern District of New York.

“The company believes that a successful reorganiﷺzation will save the company and the jobs of tens of thousands of store associates,” Sears said in a statement.

The retailer employed about 89,000 workers ꩲin the United States as of✤ February, compared with 246,000 people five years ago.