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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 reported on Thursday.
Seven & i, operator of the world’s largest convenience store chain, last year reached an agreement to sell Sogo & Seibu to U.S. fund Fortress Investment Group, but the deal has been on hold as it received flak from workers.
The company will sell the unit on Sept. 1, triggering a plan for a walk-out at a flagship store in what would be Japan’s first major strike in decades, Reuters reported on Wednesday, 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, according to a union member, Reuters reported.
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.
Seven & i will nullify around 90 billion yen ($615.38 million) of the 160 billion yen it has lent to Sogo & Seibu to lure assistance with the latter’s restructuring, according to the Nikkei.
($1 = 146.2500 yen)
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