Sears Holdings is looking to sell its 51 percent stake in Sears Canada as the company has struggled with disappointing sales year after year.
CNN reported that the company closed nearly 100 U.S. stores last year and may announce next week that it will be closing even more stores.
Sears, once the nation’s largest retailer, started to shift downward almost a decade ago when it merged with Kmart. In that time span, competition retailers such as Walmart and Target have continued to grow and attract more consumers.
Shares for the Illinois-based company have fallen about 4.5 percent in the past year.
"The lights are going off at Sears and Kmart," said John Kernan, an analyst with Cowen. "There are tumbleweeds blowing through the parking lots at Kmart. They're basically completely irrelevant."
The Associated Press noted that Sears Canada plans to cooperate with Sears Holdings as it explores strategic alternatives, whether that means selling its stake or the entire Sears Canada operation.