The department store chain Sogo & Seibu Co. is being sold by Japanese retailer Seven & i Holdings Co. to a U.S. investment fund, despite the labour union going on strike ahead of the announcement on Thursday.
According to Seven & i Holdings, the transfer to Fortress Investment Group will be finished on Friday. At a board of directors meeting, a decision was made. The transfer is scheduled to be completed on Friday, at which point the proposed sales price of 220 billion yen ($1.5 billion) will become official.
Separately, Sogo & Seibu announced in a statement that it would be forgiving approximately 92 billion yen ($630 million) in debt.
Around 900 striking workers marched, held placards, and distributed flyers on the streets close to Tokyo’s main Seibu department store, which had its shutters shut.
Unorderly strikes and protests are uncommon in Japan, and the strikers expressed regret for any difficulty they may have caused the public in front of the camera during Japanese TV news programmes. Given that so many urban workers rely on public transit to go to and from work, several train strikes have mostly been symbolic because the trains still run.
Due to this opposition, the Seibu acquisition has been delayed since it was first announced in November.
“We sincerely regret the anxiety and difficulty caused by the Sogo & Seibu Labour Union’s strike today for all stakeholders, including clients, residents, business partners, and staff members. According to a statement from Seven & i Holdings, “Sogo & Seibu will continue collective bargaining and discussions with the Sogo & Seibu Labour Union, and the Company will also continue to support and collaborate to an acceptable amount on such conversations.
According to Japanese media rumours, the department store premises may become home to Yodobashi Camera Co., an electronics retailer connected to Fortress.
There are ten Seibu & Sogo stores countrywide. Despite the fact that Japan saw the decline of department stores far later than other countries, such as the U.S., their influence has been dwindling since the introduction of online shopping.
The 7-11 convenience store chain, Ito-Yokado, a grocery store chain that is still somewhat well-liked, and Loft, a retailer of stationery and housewares, are all under the control of Seven & i Holdings.
The company announced that it will restructure its operations by utilising both its strength in grocery shops and convenience stores.
Fortress Investment Group LLC, situated in New York, was established in 1998 and currently oversees $44.7 billion in assets.