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HOFFMAN ESTATES, Ill. — Sears Holdings Corp. is hoping to raise $380 million in operating cash ahead of the year-end holidays by offering its shareholders the rights to buy a stake in Sears Canada Inc.
Sears Holdings Corp. is hoping to raise $380 million in operating cash ahead of the year-end holidays by offering its shareholders the rights to buy a stake in Sears Canada Inc.
Sears is offering 40 million shares in Sears Canada. If successful, the sale would slice Sears’ stake in the Canadian retailer to 12%, from 51% at present.
Over the summer Sears tried to sell the 62-year-old Canadian chain via auction. That effort failed to attract a suitable bid, forcing the parent to take out an emergency $400 million loan last month as it prepared for the holidays.
Sears Canada said last month that its president and chief executive officer, Douglas Campbell, was stepping down after a year on the job to tend to family issues in the United States. The company said Campbell would remain on the job through year’s end, or until Sears has hired a replacement.
Edward Lampert, chairman and CEO of Sears Holdings, which also owns Kmart, said he was expecting $168 million of the offering’s proceeds by late this month and the rest by early November.
Lampert is trying to reverse the retailer’s slide by beefing up its digital and rewards programs.
Lampert, who is Sears’ largest shareholder, took over as the company’s CEO in February 2013 and has been under pressure to turn the business around.
He has sold assets and sought to shrink the company’s store base as he seeks to halt a string of operating losses.
