Chairman Edward S. Lampert will take over as CEO of Sears Holdings Corp., the Chicago Tribune reported.
"In light of Lou's decision to step down, the board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings," Lampert said in a statement.
"I have agreed to assume these additional responsibilities in order to continue the company's recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy."
Sears Holdings, which operates Sears and Kmart stores, said Monday it expects to report net losses of between $280 million and $360 million for the quarter ending Feb. 2, the newspaper said.
Notable deaths of 2014 [PHOTOS]