Dai-ichi Hotel Ltd. effectively failed Friday morning when the Tokyo-based hotel chain and its four group firms filed with the Tokyo District Court for protection from creditors under the Corporate Rehabilitation Law.
Their liabilities total 125.5 billion yen, with Dai-ichi Hotel alone accounting for 115.2 billion yen of the sum, making it the largest Japanese hotel bankruptcy in the history of the industry, according to Teikoku Databank, a private research body.
A food company related to Dai-ichi is also expected to file for bankruptcy.