UPDATE 3-Sears Canada CEO resigns, parent company shares keep sliding

Thu Sep 25, 2014 9:06pm EDT
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* Sears Canada CEO to step down, cites personal reasons

* Sears shares down 23 pct since last Monday

* Fairholme says not participating in Lampert loan (New throughout, adds filing from shareholder Fairholme)

By Solarina Ho and Nathan Layne

TORONTO/CHICAGO, Sept 25 (Reuters) - The turnaround specialist who had signed on to run Sears Holdings Corp's Canadian business is resigning for personal reasons, the struggling U.S. retailer said on Thursday, the same day a major shareholder said it was no longer interested in contributing to a loan.

Chief Executive Officer Douglas Campbell will resign by the end of 2014 to tend to family matters, said Sears Canada, which is majority owned by Sears Holdings. Campbell had taken the helm of the unit just a year earlier.

Separately, the No. 2 shareholder in Sears Holdings, Fairholme Capital Management, said it decided not to participate in a $400 million loan extended by a hedge fund of Sears CEO Eddie Lampert to get the U.S. retailer through the crucial year-end shopping season.

Sears Holdings shares slid 2.8 percent on Thursday. They are down 23 percent since last Monday, when the loan deal was announced.

Last week, after Sears announced the loan, Fairholme said it was considering taking part in the financing. On Thursday, it said it declined "in light of its investment criteria".   Continued...