Sears goes bankrupt

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

The company, which employs 68,000 people, filed for Chapter 11 early Monday in White Plains, New York. Eddie Lampert, the hedge fund manager who propped up the retailer for years with lifelines and financial engineering, is stepping down immediately as chief executive officer. At the same time, Lampert’s ESL Investments Inc. is negotiating a financing deal while also discussing buying “a large portion of the company’s store base,” Sears said in a statement.