Japanese retailer Seven & I Holdings on Tuesday announced the replacement of Takuji Hayashi as president of Sogo & Seibu in an apparent move to pave the way for a sale of the department store unit.
Hiroto Taguchi, 62, an executive at Sogo & Seibu, took over the presidency from Hayashi.
“We aim to realize an early sale of (Sogo & Seibu) through the change to a more powerful leader,” Seven & I said in a statement.
The replacement raises the possibility that delayed negotiations over the Sogo & Seibu sale plan will be settled.
In November last year, Seven & I said it would sell Sogo & Seibu to U.S. fund Fortress Investment Group, which is in partnership with home electronics retailer Yodobashi Holdings.
Meanwhile, the planned sale has been delayed twice due to local opposition to a plan to open a Yodobashi outlet in Sogo & Seibu’s flagship Seibu Ikebukuro store in Tokyo after the department store is sold to the fund.
Yodobashi has made a concession, promising that it will not open the outlet on the ground or basement floors, regarded as the face of a department store.
Meanwhile, the labor union of Sogo & Seibu remains strongly opposed to the opening of a Yodobashi outlet on any floor of the Seibu Ikebukuro store.
Seven & I apparently hopes that Taguchi, who has a reputation as a good coordinator, will help accelerate the talks to sell Sogo & Seibu.