TOKYO--(BUSINESS WIRE)--Fortress Investment Group LLC (along with its affiliates, “Fortress”) today announced that funds managed by affiliates of Fortress plan to acquire 100% of the issued shares of Sogo & Seibu Co., Ltd. (“Sogo & Seibu”), Seven & i Holdings Co., Ltd.’s (“Seven & i”) wholly-owned department store subsidiary, on September 1, 2023. As part of this transaction, Fortress will partner with leading Japanese consumer camera and electronics retailer, Yodobashi Holdings Co., Ltd. (“Yodobashi HD”), which plans to introduce new stores in select Sogo & Seibu’s flagship stores.
Through our partnership with Yodobashi HD, Fortress believes that we will be able to create business synergies to not only maximize the value of Sogo & Seibu’s operations, but also to revive its flagship store in Ikebukuro and surrounding communities.
The Seven & i Board determined that Fortress’s extensive real estate expertise, deep turnaround experience and the financial resources needed to invest in structural business reform would be the best fit to preserve and strengthen the Sogo & Seibu business. Fortress has also built up a strong partnership with Seven & i over the past year, and is pleased to continue to have Seven & i’s future support on the transition, including plans to address the concerns of Sogo & Seibu’s employees.
With the partnership with Yodobashi HD, Fortress plans to invest more than ¥20 billion (USD 138 million) in capital expenditures and renovations in the stores including Seibu Ikebukuro, which is adjacent to Ikebukuro Station, the world’s third most heavily trafficked transportation hub with a daily ridership of nearly 2.7 million. The renovation of the Ikebukuro store and additional stores to be announced in the future will be based on the culture and consumer needs of each region and focus on recreating the physical retail experience for today's consumer's technology-driven preferences.
Akio Yamashita, Managing Director and Representative in Japan of Fortress Investment Group (Japan) GK 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.”
About Fortress Investment Group
Fortress is a leading, highly diversified global investment manager with over $44 billion of assets under management as of March 31, 2023. Founded in 1998, Fortress manages assets on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
