Sears Canada is beginning to brace itself for a possible bankruptcy.

The cash-strapped department-store chain has begun to reach out to top law firms in Canada in a desperate search for restructuring advisers as it weighs a potential Chapter 11 filing, The Post has learned.

A bankruptcy filing isn’t imminent or even certain, sources cautioned.

Plus, the money-losing chain likely has enough inventory to get through the holiday season.

At the same time, billionaire Eddie Lampert — who as chairman of Sears Holdings controls Sears Canada through a 51-percent equity stake in the company — hasn’t yet given up on turning around the ailing chain, which has seen sales decline in each of the past six years.

As reported by The Post earlier this week, an auction by Chicago-based Sears Holdings of its 51-percent stake in Sears Canada failed to attract any bids in its second round.

That’s because prospective bidders in the auction run by Bank of America got spooked after getting a look the company’s fast-deteriorating financials, sources said.

Now, it’s suppliers that are growing skittish about Sears Canada’s ability to pay its bills through the cash-intensive ramp-up to Christmas.

Separately Thursday, Fairholme Capital Management, one of Sears’ largest shareholders, said it was unable to reach a deal with real estate firm St. Joe to participate in a $400 million loan to Sears Holdings.

 

Sears Canada braces for possible bankruptcy as CEO leaves | New York Post.