The Low Post News

Sears Holding Corp Looks Into Selling Canada Stake

On Wednesday, Sears Holding Corp said it was exploring the strategic options available for its stake in Sears Canada including possibly selling its share.

Sears is owner of 51% of its namesake Sear Canada and said it is considering the possibility of selling its holdings or the entire operation. The long time retailer said it would be hiring an investment banker to help with the proceedings.

Sears Canada board of directors said it would be cooperating completely during the entire process.

This announcement comes while CEO of Sears Edward Lampert, whose own hedge fund is owner of close to half of the company stock, continues making dramatic changes to the business, including spinning off Lands’ End recently.

In April, a leading business publication reported that Sears had been considering its alternatives for its remaining stake in Sears Canada as well as its auto shops.

In recent times, Sears had distributed aggressively some of the most attractive sectors of its company to its shareholders.

The retailer announced the moves have a goal of unlocking shareholders value, making it a possibility for them to choose and pick amongst the assets they would like to hold, while allowing the business as well to focus upon running core businesses.

However, the core business, including the flagship chains of Sears and Kmart has had losses of $5.4 billion during the last three years.

Much of the remaining value of the company is tied up in real estate holdings and there the estimates widely differ to what those real estate properties are really worth.

At the same time, Sears Canada had been eliminating jobs and trying to make a turnaround as additional competition from stores in the U.S. such as Target infiltrates the retail market north of the border.

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