UPDATE 1-Sears Canada shares halted amid reports co seeking creditor protection

protection@ (Adds details, background)

June 22 (Reuters) - Trading in the U.S.-listed shares of Sears Canada Inc was halted on Thursday pending news, two days after reports the Canadian retailer was preparing to seek court protection against creditors in the coming weeks.

A Sears Canada representative did not immediately respond to a request for comment.

The retailer, controlled by billionaire Eddie Lampert, last week flagged doubts about its ability to continue as a going concern and said it was exploring strategic options, including selling itself.

Sears Canada's business may be sold off in pieces after the company files for creditor protection, which will likely lead to liquidation, a person familiar with the matter told Reuters on Tuesday.

Sears Canada is valued at about C$63.5 million ($47.7 million), a far cry from the C$1.18 billion valuation it had when it was partially spun off from U.S. retailer Sears Holdings Corp in November 2012.

Sears Canada, much like Sears Holdings, now its fourth-largest shareholder, has struggled for years to remain relevant to shoppers who have switched to stores that keep up with fast-changing fashion trends.

($1 = 1.3301 Canadian dollars) (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sai Sachin Ravikumar)