Fairholme Capital Management LLC, the investment management firm headed by Bruce Berkowitz increased its position in Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC) based on its 13G filing with the Securities and Exchange Commission (SEC).
The filing showed that Fairholme Capital Management now owns 13,421,294 shares or 13.2% stake in Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC), up from 11.6% last month.
Sears Holdings Corporation (NASDAQ:SHLD) announced that its rights offering or 40 million shares of Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC), which was completed on November 7 was oversubscribed.
Fairholme pulled out of financing deal with Sears
In September, Fairholme Capital Management pulled out from the transaction to finance $400 million to Sears Holdings Corporation (NASDAQ:SHLD). According to the investment management firm, its affiliate, The St. Joe Company did not agree on the terms of the financing deal. However, Sears Holdings Corporation (NASDAQ:SHLD) obtained $50 million financing from PYOF 2014 Loans, LLC.
Sears Canada’s former chairman and CEO Mark Cohen previously stated that the company was a victim of Eddie Lampert’s intention to essentially liquidate the business,
Last month, Mark Cohen, a former chairman and CEO of Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC) commented that the Canadian retailer was a victim of Edward Lampert’s intent to liquidate the business. Cohen pointed out that Sears Canada was perfectly healthy and profitable when he left. He described the current situation of the company a “tragedy.”
Sears Canada financial performance
Last month, Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC) reported that its revenue declined to $834.5 million from $982.3 million for the third quarter. Its same store sales dropped 9.5%.
The company reported also reported that its net loss widened from $48.8 million or $0.48 per share to $118.9 million or $1.16 per share during the quarter.
Ron Boire, acting president and CEO of Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC) said, “These results are disappointing, and the management team is focused on making Sears Canada successful first and foremost by building on its relationship with Canadians by providing great fashionable product made of high quality at affordable prices.”
The shares of Sears Canada Inc. (TSE:SCC) (NASDAQ:SRSC) are trading $9.35 per share at the time of this writing around 12:53 in the afternoon in New York.