Funds managed by affiliates of Fortress Investment Group have revealed plans to purchase 100% of the issued shares of Sogo & Seibu on 1 September 2023.

Sogo & Seibu is the wholly-owned department store subsidiary of Seven & i. An agreement to divest the business to Fortress was first announced in November 2022.

As part of the deal, Fortress will partner with Japanese consumer camera and electronics retailer Yodobashi Holdings (Yodobashi HD).

The partners will introduce new Yodobashi HD stores in select Sogo & Seibu’s flagship stores.

Fortress will also invest more than Y20bn ($138m) in capital expenditures to renovate stores, including Seibu Ikebukuro, which is located adjacent to Ikebukuro Station.

The investment manager expects the partnership with Yodobashi HD to maximise the value of Sogo & Seibu’s operations and revive its flagship store in Ikebukuro and surrounding communities.

The deal will not include Loft, a Sogo & Seibu unit that sells household items.

Fortress Investment Group (Japan) GK managing director and Japan representative Akio Yamashita said: “We are pleased to announce the acquisition of such an iconic company. We would also like to thank the various stakeholders who have supported our plans.

“We are committed to achieving business continuity for Sogo & Seibu and will work with Seven & i to support the management of Sogo & Seibu to maintain Sogo & Seibu’s workforce to the extent possible.”

According to a report by Reuters, in response to the latest development, a worker union planned to launch a strike at the flagship Seibu Ikebukuro store in Tokyo.