Sears Holdings Corporation Explores Possible Sale of Sears Canada

Sears Holdings Corporation

announced today that it intends to enlist an investment banking firm to explore "strategic alternatives" for its fifty-one percent stake in Sears Canada. The company noted this could include selling its shares or the potential sale if Sears Canada as a whole. Sears Canada's board of directors said that the board and management will cooperate fully with its parent company in order to "achieve value for all shareholders". The Street appears to be reacting favorably to the news as shares of Sears are trading up approximately two percent in today's Pre-market session. Sears Holdings has been suffering from declining sales since 2005 when it merged with discount chain K-mart. Additionally, Sears Canada has "lost significant market share" from the expansion of Wal-Mart Stores Inc.

and Target Corp.

into the market, according to FOX business. Both Sears Canada and Sears Holdings have had to stores in a struggle to remain competitive and control costs. In fact, Sears Holdings has close approximately three hundred stores since 2010.