Sears is considering selling its Canadian operations as the retailer continues with efforts to turn around its business.
The retailer, which runs its stores and Kmart locations, said that it is looking at strategic options for its 51% interest in Sears Canada. The Hoffman Estates said this includes the possible sale of its stake or the entirety of Sears Canada.
Sears Canada’s board and management said they plan to fully co-operate with Sears Holdings in the process. Sears Canada spokesman Vincent Power said the announcement is an ownership matter and doesn’t affect the running of Sears Canada stores.
Sears Holdings previously sold some store leases in Canada. Its overall business has been struggling after years of sales declines, and it’s been closing some unprofitable stores.
Eddie Lampert, CEO and Sears chairman, took over the company in 2013. He has been under pressure to turn around the business.
In 2012 Sears announced plans to restore profitability by cutting costs, reducing inventory, selling off some assets and spinning off others. Those moves helped the company reduce net debt by $400 million U.S. and generated $1.8 billion in cash from the asset sales.
