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Sears leases retail space to Primark in bid to stem cash woes

Department store company Sears Holdings announced two deals that will yield new cash injections and may help the battered retailer alleviate some of its financial woes.

The hedge fund run by Sears CEO Edward Lampert bought Sears Canada shares, which supplied $169 million, the company said on Monday. Sears is also leasing seven stores in the Northeast to U.K. clothing retailer Primark.

A Sears store in Peoria, Ill.
Daniel Acker | Bloomberg| Getty Images
A Sears store in Peoria, Ill.

Although the financial details of the Primark deal were not disclosed, the company said that in the next 12 to 18 months, about 520,000 square feet of retail space will be leased to Primark.

Sears will share space in six of the seven leases. The company will end its presence in Philadelphia's Prussia Mall, which will be replaced by Primark. In Staten Island Mall, Sears will share the space with incoming tenant Primark. Sears will announce the other five locations later.