TORONTO—Sears Canada Inc. on Wednesday said its board intends to cooperate with Sears Holding Corp. as the US-based holding company explores its options for the Canadian retailer. Sears Holdings is weighing a potential sale of its 51% interest in Sears Canada, or an outright sale of the company, and will hire an investment banking firm to advise it.

The move comes amid Hoffman Estates, IL-based SHLD's ongoing attempts to turn its fortunes around amid declining sales. This past November, the New York Post reported that SHLD CEO Eddie Lampert was weighing a sale of some or all of Sears Canada, a report the company denied at the time.

Reuters late Wednesday afternoon quoted analysts as saying they didn't expect a quick sale should Sears Canada go on the block. “This is carrion,” Jim Danahy, chief executive of CustomerLAB, told Reuters. “The vultures are circling and they're not interested, no one's interested, in the whole thing.”