P.M. BRIEFING : Japanese Offer U.S. 7-11s No Aid

Giant Japanese supermarket operator Ito-Yokado, which last month agreed to buy a major share of 7-Eleven convenience store operator Southland Corp., said today it has no plans to bail out the financially strapped U.S. retailer.

“At present, we have no plans to help out,” an Ito-Yokado official said. “We have not received any request from Southland for help. And the problem is solely that of Southland.”

Dallas-based Southland reported Monday a loss of $1.01 billion in the fourth quarter. Southland said it may be forced into bankruptcy.

In late March, Ito-Yokado, which operates 7-Eleven stores in Japan, made a $400-million offer to buy 75% of debt-laden Southland. Ito-Yokado said today it is still ready to proceed with the Southland deal if its conditions are met. The bid was contingent on Southland being able to complete a financial restructuring, including swapping about $1.8-billion worth of junk bonds for straight bonds and common shares.