Dive Brief:

• Sears Holdings Corp. said it will offer shares of Sears Canada Inc. to raise as much as $380 million of much-needed cash.

• Some 40 million shares will be offered to existing shareholders including Sears CEO Eddie Lempert’s own hedge fund, the company said.

• The offer will reduce Sears Holding Corp.’s majority (51%) interest in its Canadian sister company.

Dive Insight:

This move is one in a series, including a recent loan from Sears CEO Eddie Lempert’s hedge fund and sales of real estate and other holdings, to boost the retailer’s liquidity. It's a situation that has been declared dire by many, including observers, analysts, and credit-rating agencies.