Jeans maker Edwin Co. has filed for an out-of-court procedure to rehabilitate its business through a private-sector intermediary, a credit research agency and lawyers said Wednesday.
Following its fiddling of accounts to conceal its losses from derivatives transactions, the largest jeans maker in Japan aims to turn its business around through the highly transparent procedure known as "alternative dispute resolution."
Edwin and its 16 group companies filed for the procedure Tuesday, according to Tokyo Shoko Research. If the application is approved by a third-party organization, the company will start negotiations with financial institutions and look for sponsors.
The company's financial condition deteriorated due to intensifying competition with other large-scale retail shops offering low-cost clothing, a business slump in the wake of the 2011 earthquake and tsunami in northeastern Japan, and the failure of its securities investments in 2012.