Seibu Department Stores Ltd., set to integrate operations with the Sogo retail group next month, will not pay retirement bonuses to Chairman Kotaro Matsumoto and seven other departing top executives, company officials said Tuesday.
Seibu made the decision after its creditors agreed earlier this year to a 230 billion yen bailout program under a revival plan for the crippled department store chain, clarifying the responsibility of management, they said.
Matsumoto, 64, will step down Wednesday, when Seibu holds an annual shareholders' meeting. No specific resolution is scheduled on dispensing with retirement bonuses for him and the others, the officials said.
Seibu has also given its union a proposal to halve summer bonuses, along with a plan to eliminate 500 jobs through "voluntary retirement."
Seibu and Sogo Co. announced earlier this month they will integrate operations Sunday under a holding company, creating one of the largest department store groups, with annual sales of more than 1 trillion yen.
Sogo Inc., overseer of the Sogo retail group, will become the holding company Millennium Retailing.