Sears Canada is selling the leases on five of its department stores, including its flagship location in Toronto's Eaton Centre.


The $400 million transaction is the largest sale of leases since the retailer began shedding assets and cutting jobs in an effort to turn around its struggling operations.


The sale is especially notable because the Eaton Centre is one of the company's most visible Canadian stores, located in a central tourist area.


Across the company's operations, about 965 employees will be affected by the transactions.


Sears Canada says they will have the option to apply for other available jobs within the company.


Under the agreements, store leases for Sears locations at Sherway Gardens in Toronto, the Markville Shopping Centre in Markham, Ont., London-Masonville Place in London, Ont. and Richmond Centre in Richmond, B.C. will be sold back to mall operator Cadillac Fairview and its partners.