Parent company of Sears, Kmart prepares for possible liquidation

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.

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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.