Sears share price spiked 1.2% on the news to $43.76, but troubled retailer’s share price has declined 4.5% over the past year.
The share price for Sears Canada rose 4.7% on mid-day trading following the announcement. Market value for the Canadian division was pegged at $1.5 billion.
Sears CEO Eddie Lambert has already sold off the company’s Lands’ End clothing operation, real estate holdings and closed its retails outlets. As part of the contemplated sale of its Canadian unit, Sears will hire an investment bank in an advisory role.
Macy’s, Kohl’s, and Canada’s Hudson Bay Co. are among the potential buyers for Sears Canada, according to Desjardins Securities analyst Keith Howlett. In 2012 Target thought about buying Sears Canada but bought Zellers stores instead.
Sears and K-Mart, which merged in 2005 in an $11 billion acquisition, have been struggling against intense retailer competition and the potential sale of Sears Canada is seen as part of a turnaround effort.
Although Sears has closed some 300 stores since 2010, it still has more than 2,300 stores in the US and Canada. Sears Canada currently operates 176 corporate stores, 234 Hometown stores, 1,400 catalog and online pickup outlets, and 97 travel offices.