Sears stock plunges on reports of bankruptcy protection

Sears Canada's stock has plunged this morning following a news report that it's preparing to seek bankruptcy protection within weeks.

The shares (TSX:SCC) fell 25 per cent to 60 cents on the Toronto Stock Exchange shortly after the open Wednesday.

The stock had already declined from $1.14 on June 12, prior to a company warning that there was ``significant doubt'' about its future and that it could be sold or restructured.

Sears Canada didn't immediately comment on the article by Bloomberg that says the national retailer is preparing for a court filing or liquidation.

The Toronto-based company and its American counterpart have been suffering from dwindling sales for years from changes to consumer buying patterns and new competition, particularly from online shopping.

In April, Sears Canada announced that its 2016-17 loss was $321 million.