Not sure, I was expecting Lowes or Home Depot to buy it, but hasn't happened.
I think it will live on, at least as a vacuum brand. I've been seeing Kenmore vacuums increasingly being sold at Target, and online at most major retailers as well as in infomercials.
None of the vacuums sold through these places seem to have any mention of Sears Holdings on the packaging, they also tend to differ in color between the ones sold at Sears.