Bankrupt Sears victim of switch to online sales

A Sears store scheduled for closure in Overland Park, Kansas (Charlie Riedel/AP)

Rick Green and Dawn McCarty

Sears Holdings, the 125-year-old retailer that became an icon for generations of American shoppers, has filed for bankruptcy. It is saddled with billions of dollars of debt racked up as it struggled to adjust to the rapid shift toward online consumption.

The company filed for Chapter 11 protection from creditors with the US Bankruptcy Court in White Plains, New York, early yesterday and said Eddie Lampert is stepping down immediately as CEO. At the same time, Mr Lampert's ESL Investments is negotiating a financing deal while discussing buying "a large portion of its store base", Sears said.