Strike is first by major Japanese dept store in 61 years
Union protesting sale of Sogo Seibu unit to U.S. fund
Seven i announces Sept. 1 sale of unit to Fortress
Unit39;s value discounted by 205 mln

TOKYO, Aug 31 Reuters Workers at a major Tokyo department store went on strike on Thursday after talks with management over the planned sale of their company broke down, marking the first major walkout the country has seen in decades.

Some 900 workers at the flagship Seibu store in the bustling district of Ikebukuro are protesting the sale of Sogo Seibu, a unit of Japanese retail giant Seven i, to U.S. fund Fortress Investment Group.

They are seeking job and business continuity guarantees, unhappy with reported plans for discount electronics retailer Yodobashi Holdings to take over roughly half of the store.

Critics, who include officials in Ikebukuro, argue that such a change would cheapen Seibu39;s image by replacing many individual boutiques in store.

The deal will close on Friday, Seven i said, adding it had reduced Sogo Seibu39;s sale value by 30 billion yen 205 million from the originally agreed 250 billion yen after requesting Fortress give maximum consideration of Sogo Seibu39;s business continuation and continuation of employment.

Seven and i will also waive 91.6 billion yen in debt, or more than half the amount it has lent to its unit, as part of the deal.

In a statement, Fortress said it would work with Seven i to support Sogo Seibu39;s…