11/17/2014 08:39 EST | Updated 01/17/2015 05:59 EST

Sears Canada loses JPMorgan as credit card partner

JPMorgan Chase said Monday it plans to terminate its credit card deal with Sears Canada, a move that could see the struggling retailer have to stop offering any Sears-branded credit cards by this time next year.

The U.S. bank said Monday it has terminated its agreement with the retailer relating to the Sears Card and Sears MasterCard credit cards. The bank will live up to the terms of the original deal until November 15, 2015 but no further.

The two companies said in a release that they will explore a sale of the credit card portfolio to another party. If that happens, JPMorgan has agreed to pay Sears up to $174 million — but there's no guarantee a buyer might emerge.

Sears is in the midst of a turnaround plan that has seen the company close underperforming stores. But there are still 176 Sears stores and more than 220 Sears Hometown stores across Canada.

More to come