A liquidation sale at the store, 2 N. State Street, begins on January 26.
Sears released a statement that read, in part: These decisions are never easy. But the store has lost millions of dollars since opening and we can no longer continue to support the store's operating losses.
About 160 people work at the Sears State Street store; most are part-time. According to a statement, some workers who qualify will get severance and the opportunity to apply for open jobs at other Sears or Kmart stores.
The company said the closing is part of a plan to adjust its business model.
The State Street Sears store opened in 2001.