Dive Brief:

• Failure to sell a majority stake in Sears Canada has potentially dire implications for parent company Hoffman Estates, IL-based Sears Holding Co.

• Sears hoped to raise more than $750 million from a sale of its 51% stake in the Canadian retailer, but potential buyers shied away because of Sears Canada’s record of losses amid falling sales.

• The auction washout is likely a key reason for the recent $400 million loan by Sears Holding Corp. CEO Eddie Lampert’s own hedge fund. 

Dive Insight:

The failure to sell the preponderance of shares of Sears Canada, which is own by Sears Holding Corp., is bad news for both companies. The Canadian retailer would have benefited from shifting its majority stake to a company in better shape, and its parent could have used the cash. This is one of many reasons why many are predicting the end of Sears.