Temporary reprieve for Sears as chairman submits bid to buy retailer

This is the closest that Sears has come to shuttering its doors for good as it now weights closing 50 to 80 more stores, CNBC reported.

Sears Holdings, the company that operates the two brands, filed for bankruptcy protection in October and is now awaiting bids to keep some of its remaining stores open.

Failing a successful purchase bid, Sears is facing the possibility of liquidation, ending the company's 125-year run as one of the country's best-known retailers. Lansing's Sears has dodged another round of closings.

Lampert's proposal is an effort to pull the company out of bankruptcy using his hedge fund, ESL Investments.

On Oct. 15, Sears Holdings filed for Chapter 11 bankruptcy protection, a last-ditch attempt to avoid folding after years of store closures, sales declines and borrowing.

Lampert, who is Sears' largest creditor, said his plan would keep 425 stores open, rather than the 500 stores he proposed earlier.

Sears received a reprieve from liquidation after chairman Edward Lampert made a $4.4 billion bid to buy it at the last minute.

According to a news release from Sears, the retailer informed employees of the closure on Thursday.

The bid is also a reckoning for Lampert, who saw much of his fortune evaporate when Sears filed for Chapter 11 on October 15 after years of sliding sales and asset spinoffs.

A US bankruptcy court judge must approve any sale of Sears.

Sears could choose to extend the deadline it set to give potential bidders more time to finalize plans or secure financing.

The Kmart in Rochester and the Sears in the Mall of America are being closed.

Sears will also close its store in Oconomowoc.