Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Japan's Seven & i Aims To Keep Sogo & Seibu Workers After Buyout: Report

By Reuters
Share this article
Japan's Seven & i Aims To Keep Sogo & Seibu Workers After Buyout: Report

Japan-based retailer Seven & i Holdings intends to keep the roughly 5,000 workers at its loss-making department store Sogo & Seibu employed even after the unit's planned sale, the Nikkei business daily has reported.

Seven & i, operator of the world's largest convenience store chain, last year reached an agreement to sell Sogo & Seibu to US fund Fortress Investment Group, but the deal has been on hold as it received flak from workers.

The company will sell the unit on 1 September, triggering a plan for a walk-out at a flagship store in what would be Japan's first major strike in decades, Reuters reported earlier, citing a source familiar with the matter.

A workers union intends to carry out its threat for a strike at the flagship Seibu Ikebukuro store in Tokyo on Thursday (31 August), according to a union member, Reuters reported.

Sogo & Seibu

Once the transaction is complete, the company has decided to work with Fortress to maintain the employment of the workers, including the provision of transferring employees within Sogo & Seibu or to another unit, the Nikkei stated, adding that the company has already requested cooperation from Fortress.

ADVERTISEMENT

Seven & i will nullify around 90 billion yen (€560 million) of the 160 billion yen (€1 billion) it has lent to Sogo & Seibu to lure assistance with the latter's restructuring, according to the Nikkei.

In June of this year, Seven & i Holdings reported a nearly 20% fall in first-quarter operating profit.

Profit fell to 81.99 billion yen (€530 million) for the three months ended 31 May, from 102.37 billion yen (€660 million) in same period a year earlier.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.