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What: Shares of chain retailer Sears Holdings (NAS: SHLD) jumped 11% following news that the company has agreed to close three of its major retail stores in Canada.
So what: Struggling to generate cash, Sears announced this morning it was planning to close outlets at the Vancouver Pacific Centre, the Calgary Chinook Centre, and the Ottawa Rideau Centre by Oct. 31. It plans to return the locations back to developer Cadillac Fairview Corp. for a sum of $170 million Canadian.
Now what: Welcome to the new softer side of Sears. We've seen store closures and now the fire sales have begun. Sears' declining business has caused a serious cash crunch, and it's doing its best to shore up its balance sheet. However, I don't see a magic pill solution to Sears' problems. It's going to take years to rebrand the company and move its focus back to its primary growth brands like Craftsman and Kenmore and, given that, I'm avoiding the stock here like the plague.
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At the time this article was published Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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