Seven & i Holdings has abandoned its planned $5.8 billion management buyout after Itochu Corporation, a key partner, withdrew its support, according to a report by Yomiuri. The decision marks a significant setback for the Japanese retail giant, which had been seeking to streamline its operations and focus on its core businesses.

The buyout, which was intended to restructure Seven & i’s portfolio and improve profitability, faced challenges due to disagreements among stakeholders and Itochu’s unexpected exit. Itochu, a major trading house, had been a critical player in the deal, and its withdrawal left the buyout plan untenable.

Seven & i, the parent company of the 7-Eleven convenience store chain, has been under pressure to enhance shareholder value amid slowing growth in its domestic market. The failed buyout raises questions about the company’s future strategy and its ability to navigate a highly competitive retail landscape.

Analysts suggest that Seven & i may now explore alternative strategies, such as divesting non-core assets or pursuing smaller acquisitions, to achieve its goals.