(CNBC) — Sears Holdings has contacted banks in recent days to arrange the financing necessary to file for bankruptcy after 125 years in business, people familiar with the situation told CNBC.

The stock plummeted 32 percent, to 40 cents a share, in Wednesday’s premarket trading after the report.

The so-called “debtor-in-possession” loan, which companies need to have enough liquidity to keep running the business during bankruptcy, is the clearest sign yet that the department store chain may finally file after years of losses. Sears has a $134 million debt payment due Monday that it previously said it may not be able to cover.

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