Sears Holdings Corp. (Nasdaq:SHLD) denied media reports that it is considering selling its Canadian business. Yesterday, The New York Post cited unnamed sources who claimed Sears' CEO Eddie Lampert was planning to sell its Sears Canada division.
Rumors of the sale claimed that several major investment banks including Goldman Sachs have been contacted about overseeing a sale process of the Canadian unit.
"It is false to claim that Mr. Lampert, the CEO of Sears Holdings, is interviewing or otherwise is in talks with investment bankers about Sears Holdings' interest in Sears Canada," said a company-issued statement on Monday, Nov. 25.
Not only did Sears deny the rumors of a sale, but it reaffirmed plans to bolster its Canadian business.
"Sears Holdings reiterates its October 29, 2013, statement that Sears Holdings will work with the board and management of Sears Canada with a goal of increasing the value of our 51 percent interest and realizing significant cash proceeds to support our transformation and to create value for our shareholders," the statement continued.
The rumors had begun to surface just one week after Sears Canada, which operates nearly 190 stores, reported a third-quarter loss of $46.3 million and declining revenue of $4.3 billion. While it's now clear that a sale of the division is not in the future, Sears is planning to restructure the unit by vacating some of its larger Canadian stores, including its flagship downtown Toronto location, to cut costs.
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