TORONTO—Sears Canada Inc. on Wednesday said its board intends tocooperate with Sears Holding Corp. as theUS-based holding company explores its options for the Canadianretailer. Sears Holdings is weighing a potential sale of its 51%interest in Sears Canada, or an outright sale of the company, andwill hire an investment banking firm to advise it.


The move comes amid Hoffman Estates, IL-based SHLD's ongoingattempts to turn its fortunes around amid declining sales. Thispast November, the New York Post reported thatSHLD CEO Eddie Lampert was weighing asale of some or all of Sears Canada, a report the company denied atthe time.


Reuters late Wednesday afternoon quoted analysts as saying theydidn't expect a quick sale should Sears Canada go on the block.“This is carrion,” Jim Danahy, chief executive of CustomerLAB, toldReuters. “The vultures are circling and they're not interested, noone's interested, in the whole thing.”


Sears Canada's most recent quarterly earnings report, reflectingfourth-quarter and full-year results for the 12 months that endedFeb. 1, showed a 9.6% decline year-over-year in Q4 revenues,although the results were skewed by a shorter quarterly period thisyear. Its total revenues for the year were off 8.2%Y-O-Y.


Founded in 1953, Sears Canada operates 176 corporate and 234Hometown stores, 1,400 catalog and online pick-up locations, 97Sears travel offices and a nationwide repair and service network.Last fall, the company said it would sell the leases on five of itscorporate stores, including its flagship at the Eaton Centre inToronto.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.