NEW YORK (TheStreet) -- Shares of Sears Holding Corp. (SHLD) are up 0.85% to $38.01 in early morning trade after it was reported that Sears Canada may avoid liquidation, according to the New York Post.
An auction of the struggling department-store chain has attracted the interest of Kaluzny's Sycamore Partners, a prolific private-equity firm known for scooping up distressed store brands, the Post said.
Sycamore, which recently bought Jones Group, Talbots and Hot Topic, is considering a bid for Sears Canada with a plan that could include "running the business," sources told the paper.
While Sears CEO Eddie Lampert has signaled he wants as much as $2 billion for the 176-store chain, he is said to be considering lower offers, the Post noted.
TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."