Sears Holdings Corp. said it would raise up to $380 million by selling most of its stake in Sears Canada Inc. through a rights issue, generating much-needed cash ahead of the crucial holiday shopping season, according to a Reuters report.
Sears Holdings will use the funds to support the turnaround of its business and for its operations in the holiday shopping season, said Rob Schriesheim, chief financial officer, in a statement.
Additionally, the Canadian chain reported its ninth loss in 14 quarters in August.
In December, the company raised about $500 million from the spinoff of its Lands’ End clothing business and $165 million from the sale of real estate.
Sears Holdings also took a short-term loan of $400 million from Lampert’s ESL Partners LP in September.
Last week, the company announced that Sears Canada CEO Douglas Campbell would resign by the end of 2014 after only a year in the position.