Sears Set to File for Bankruptcy\, With Its Survival in Question

Sears: Will It Shrink, or Close?

Retailer plans to keep hundreds of stores open while it attempts to restructure its business or find a buyer in bankruptcy

As Sears Holdings Corp. plans to file for chapter 11 protection Sunday, the big question is whether a smaller Sears emerges from bankruptcy or whether the filing leads to a liquidation and a final end to the storied department-store chain.

Sears in recent days reached an 11th-hour deal with lenders that will allow the troubled retailer to keep hundreds of its stores open through the holidays.

The...