Sears Holdings Corp is turning to its chief executive for cash for the second time in three weeks in a sign that its efforts to sell off assets are coming up short.The retailer announced Thursday that it would raise up to $380 million by lowering its stake in Sears Canada to 12 percent from 51 percent through a rights offering. It said Chief Executive Eddie Lampert and his hedge fund, which together own 48.5 percent of Sears Holdings, would purchase about half of the offering.The move comes after a year-long attempt to find an outside buyer for the company's holdings of Sears Canada. The $380 million target is about half of what the company had previously indicated its stake was worth.The rights offering indicates that Sears may be overestimating the value of its assets, including its vast property holdings, said Brian Sozzi, head of Belus Capital Advisors and a bear on Sears stock. "There just isn't significant demand for what they are trying to unload on the market," he said.
Sears Canada Inc. (Sears) is a multi-channel retailer. Shares of SCC fell by 0.54% or $-0.06/share to $11.06. In the past year, the shares have traded as low as $10.11 and as high as $19.89. On average, 16592 shares of SCC.TO exchange hands on a given day and today's volume is recorded at 5071.
Sears Holdings Corporation (Holdings) is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. Shares of SHLD traded higher by 6.55% or $1.65/share to $26.83. In the past year, the shares have traded as low as $24.10 and as high as $67.50. On average, 1060860 shares of SHLD exchange hands on a given day and today's volume is recorded at 1109070.
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