Per the sale agreement, Costco agreed to a long-term commercial arrangement to provide Sears with warehousing, delivery and installation services and retain more than 1,500 Innovel employees. The sale also allows Sears to repay all of its non-real restate debt and potentially invigorate the company after struggling to pay vendors during the latest holiday season.

"Over the past year, during an extremely challenging retail environment, (Sears') associates have worked tirelessly to restore vendor relationships and to maintain financial support from its lenders with a focus to return the company's retail operations to profitability," the company said in a statement. "Despite these efforts, the support (Sears) received fell well short of its needs. As a result, the Sears and Kmart store formats have experienced declining sales and continued losses, consistent with trends for department store and other legacy retailers."

In early November, Sears Chairman Eddie Lampert and lenders loaned the company an additional $250 million as Sears was having trouble receiving merchandise from suppliers concerned the company could not continue to fund operations.

That same month, following more than 500 layoffs throughout the company, Sears announced 96 store closures of Sears and Kmart locations. Those closures leave the once-powerful retail giant with only 180 locations.

In February, Transform Holdco, owned by Lampert and his hedge fund, emerged as the buyer of 425 Sears Holdings stores. The company filed for bankruptcy in late 2018.