Sears Holdings Explores Possible Sale Of Sears Canada

Sears Holdings (NASDAQ: SHLD) announced Wednesday that it intends to enlist an investment banking firm to explore "strategic alternatives" for its 51 percent stake in Sears Canada. The company noted this could include selling its shares or the potential sale of Sears Canada as a whole.

Sears Canada's board of directors said that the board and management will fully cooperate 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 over one percent at $43.72.

Sears Holdings has been suffering from declining sales since 2005 when it merged with discount chain Kmart. Additionally, Sears Canada has "lost significant market share" from the expansion of Wal-Mart Stores and Target into the market, according to FOX Business.

Both Sears Canada and Sears Holdings have had to close stores in a struggle to remain competitive and control costs. Sears Holdings has closed approximately 300 stores since 2010.