Sears Holdings Corp. has rejected the $4.4 billion bid submitted by Chairman Eddie Lampert to save the bankrupt retailer from liquidation, CNBC reported Jan. 8, citing people familiar with the matter.

Sources reportedly said Sears is expected to announce its liquidation plans "this morning."

The company's advisers have deemed the bid as insufficient since it cannot cover the fees and vendor payment Sears owes, according to the report. Leading up to the retailer's decision, Perry Dean Schwartz, president of the company's hardlines business unit, resigned from the company Jan. 4.

Lampert-owned hedge fund ESL Investments Inc. intends to contest the rejection, CNBC reported, citing another person familiar with the matter. ESL plans to point out the advisory fees Sears has incurred as part of its administrative expenses during bankruptcy.