A spokesman for Sears Holdings Corporation says the company has announced the Champaign store at Market Place Mall will close in January.
The liquidation sale is already underway.
The announcement of the closure came in February of 2012, when the Champaign store and 10 others in other states were sold to General Growth Properties, which owns Market Place Mall.
The 56 employees at the Champaign store will have a chance to apply for jobs at other Sears and Kmart stores, and will receive a severance package.
The Champaign Sears store first opened in 1975.
Sears locations remain open in Danville, Mattoon, and Bloomington.