Seven & I Holdings, which owns 7-Eleven chain, is set to sell its department store chain Sogo & Seibu to US fund Fortress for US$1.4 billion, according to Nikkei Asia.
The site also said Japanese home appliance store operator Yodobashi Holdings is considering buying some of the Sogo & Seibu sites and diverting proceeds to the US fund. Yodobashi will also open stores in several Sogo & Seibu locations in the country.
Seven & I announced its plan to sell the chain to focus on its convenience store and supermarket businesses earlier this year. It had been in talks with the SoftBank Group-affiliated investment fund to obtain the first refusal right.
Sogo & Seibu, previously known as Millennium Retailing, was acquired by Seven & I in 2006. Since 2007, the department chain’s store network has dropped from 28 to 10.
The struggling department store saw revenue surging 68 per cent year on year to $1.5 billion as sales of fashion and luxury brands rebounded.