Sogo & Seibu Co.’s labor union plans to go on strike if Seven & i Holdings Co. pushes ahead with plans to sell the department store unit, according to a person familiar with the matter.
(Bloomberg) — Sogo & Seibu Co.’s labor union plans to go on strike if Seven & i Holdings Co. pushes ahead with plans to sell the department store unit, according to a person familiar with the matter.
Employees are prepared to stop coming to work unless the Tokyo-based retail giant calls off a board meeting scheduled for Aug. 31 to reach a final decision on the sale to New York-based Fortress Investment Group LLC, the person said, asking not to be identified because the discussions are private.
Labor union officials plan to meet with Seven & i representatives on Monday and could give advance notice of the strike on the same day if they fail to come to terms, the person said. A spokesperson for Seven & i couldn’t be reached by phone outside of regular business hours.
The sale, which is part of Seven & i’s efforts to reorganize its operations and focus on its core convenience store business, was originally slated for February. Following opposition from the Sogo & Seibu union due to concerns over job losses, the company had hoped to finalize the sale by Sept. 1.
Seven & i is looking to sell the unit for an enterprise value of about ¥210 billion ($1.4 billion), Bloomberg News reported last month.
The union established the right to strike last month, with nearly 94% of members voting in favor.
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