7-Eleven Announces Store Closures Amid Buyout Consideration

[Sanjeev Advani]

7-Eleven's parent company, Seven & I Holdings, is set to close 444 underperforming stores in the U.S., Canada, and Mexico due to economic pressures on lower- and middle-income consumers. This move is expected to generate an additional $30 million in operating profit for the fiscal year.

The closures come as Seven & I consider a higher unsolicited buyout offer of $47 billion from Alimentation Couche-Tard, the parent company of Circle K. While previous offers were rejected, this latest proposal has prompted the company to reassess its options.

In conjunction with these closures, Seven & I has announced a $520 million sale-leaseback transaction involving several 7-Eleven locations and plans to create a spinoff for its non-convenience store operations. These initiatives aim to strengthen the global presence of the 7-Eleven brand and unlock shareholder value.