HOFFMAN ESTATES, IL—Sears Holdings Corp. said Thursday that its board has approved the sale of up to 40 million shares of Sears Canada Inc., a move that could generate as much as $380 million. With an eye toward shoring up its cash holdings ahead of the holiday selling season, the financially beleaguered retailer is reducing its share of its Canadian operation to a minority stake of about 12 million shares. It expects at least $168 million in US proceeds by mid- to late October, with the balance coming in the following month.

Much of the early proceeds from the sale will come from Eddie Lampert and ESL Investments, which he controls. SHLD’s chairman and CEO, Lampert owns 48.5% of its stock. SHLD borrowed $400 million last month from ESL affiliates. The short-term loan is secured by first-priority liens on 25 SHLD-owned properties.

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