OSAKA -- Fujii & Co., an Osaka-based textile trader, said Monday it has applied for court-led rehabilitation with total liabilities estimated at 10.8 billion yen as of the end of August.
The application, filed Sunday with the Osaka District Court, has been accepted, the company said.
Fujii, listed on the first section of the Tokyo Stock Exchange and the Osaka Securities Exchange, applied for court protection under amendments to the bankruptcy law that went into effect in April, allowing troubled firms to carry out easier and speedier rehabilitation.
The TSE and OSE said they have suspended trading in Fujii for the day and put the company on a special post for later delisting.
The company, established in 1919, specializes in hand-knit woolen yarns, synthetic yarns and knit goods.
Sales have been falling since 1992, due to sluggish consumer spending as a result of the burst of the bubble economy. It posted pretax losses of 600 million yen in the business year that ended in March, its third consecutive year of red ink.