(CNN) – Sears, once America’s largest retailer and its largest employer, appears to be nearing bankruptcy.
One of Sears’ major shareholders recently dumped a chunk of his stock for pennies on his original investment.
The company also added a new director Tuesday who is familiar with bankruptcies and restructuring.
Stock for Sears Holdings, the parent company of Sears and Kmart, plunged 30 percent Wednesday.
And reports circulated that the company is talking to advisers and banks in preparation for a bankruptcy filing.
Sears Holdings has until Oct. 15 to pay $134 million worth of debt.
CEO and primary shareholder Eddie Lampert told the company’s board it needs to restructure more than $5 billion it owes “without delay,” according to a recent regulatory filing.
If Sears does file for bankruptcy, it could try to stay in business using the court process to shed debt and unaffordable leases.