Sumitomo Corporation Sells All Shares in Barneys Japan

Sumitomo Corporation (head office: Chuo-ku, Tokyo; president: Kuniharu Nakamura; “Sumitomo”) announced it has sold all of its shares in Barneys Japan Co., Ltd. (50.1% ownership ratio) to Seven & i Holdings Co., Ltd. (head office: Chiyoda-ku, Tokyo; president: Noritoshi Murata; “Seven & I”).

1. Reasons for sale of shares
Sumitomo’s brand business segment aims to improve the value of an operating company by leveraging on its strengths and injecting necessary resources, such as personnel, professional insight, and capital. Once the goals are met for enhancing the enterprise value of the operating company, the brand business segment frequently reshuffles its asset portfolio. The sale of Barneys Japan Co., Ltd., which Sumitomo acquired in August 2006, is in line with this strategy. The brand business segment expanded Barneys Japan’s business structure to gear up for the present era of omni-channel retailing. This includes the new opening of flagship stores, the remodeling of existing stores, the development of a factory outlet business platform, and the start of an online store. The brand business segment feels it has finished the groundwork for future growth at Barneys Japan, and its enterprise value has been improved. Thus, Sumitomo has decided to sell all of its shares in Barneys Japan to Seven & I, which became Barneys’ new partner in January 2014.
Going forward, Sumitomo plans to continue to carefully select brand businesses, and promote its strategy of injecting capital and human resources in order to improve its enterprise value.