Private equity firm Sycamore considers bid for Sears Canada: Reuters

(Reuters) – U.S. private equity firm Sycamore Partners, which recently bought Jones Group, Talbots and Hot Topic, is considering a bid for Sears Canada Inc (SCC.TO), the New York Post reported, citing a person familiar with the matter.

Eddie Lampert, who owns a controlling stake in Sears Holdings Corp (SHLD.O), expects up to US$2 billion for the 176-store chain, the New York Post said.

Sycamore Partners and Sears Holdings declined to comment on the report.

Sears Canada, which traces its Canadian roots back to the early 1950s, has fallen on hard times in recent years as it lost market share to U.S. rivals such as Wal-Mart Stores Inc (WMT.N) and Target Corp (TGT.N), which have been aggressively expanding in Canada.

In May, Sears Holdings said it was looking to sell its 51 percent stake in Sears Canada Inc and will hire an investment bank to explore options for its share of Sears Canada.

Last year, Sycamore bought Jones Group for US$1.2 billion and took teen retailer Hot Topic Inc private for US$600 million. A earlier year, it bought women’s apparel chain Talbots Inc for US$391 million, including debt.

(Reporting by Ankush Sharma in Bangalore; Editing by Gopakumar Warrier)

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