Sears to file for Chapter 11 bankruptcy protection as early as Friday

Beleaguered department store chain Sears has reportedly hired an advisory firm to assist with a Chapter 11 bankruptcy filing.

The once iconic American retailer could apply for bankruptcy protection as early as Friday, according to Reuters, after negotiations between chief executive Eddie Lampert and Sears' special board committee came to a standstill when the committee refused to approve the CEO's rescue plan.

Sears has $134m in debt due Monday, according to the Wall Street Journal, leading it to hire boutique advisory firm M-III Partners to assist with the filing.

Rumours of the 125-year-old high street retailer's demise have circled for months; however, Sears was reportedly still weighing other options.

Back in September, Lampert pulled together a last-ditch effort to save the retailer, which has a total of $5.6bn in outstanding debt. Lampert bought Sears in 2004 and merged it with Kmart the next year.

The CEO appealed to Sears' creditors to refinance $1.1bn in debt before its 15 October due date, according to a filing with the US Securities and Exchange Commission, and also called on the firm to dispose of roughly $3.25bn in real estate and assets, including Sears Home Services and the outfit's flagship Kenmore brand.

As of 1640 BST, Sears shares had tumbled 36.13% to 0.37p.