Sogo & Seibu has been acquired by Fortress Investment Group from Tokyo-headquartered retail group and 7-Eleven owner Seven & I Holdings for US$1.5 billion.

Houlihan Lokey, the financial advisor of Fortress, said that the investment management company will team up with electronics retailer Yodobashi Holdings to revamp the operations of Sogo & Seibu.

Sogo & Seibu is Japan’s third-largest department store operator and has 10 stores in prime locations across the country.

The revamp plans include opening new Yodobashi outlets in key locations and renovating flagship stores such as Seibu Ikebukuro, which is adjacent to the Ikebukuro Station in Tokyo.

Houlihan Lokey said that Seven & I Holdings will focus on further growing its convenience store business after closing the sale of Sogo & Seibu.