Two relatives of former Sogo Co. Vice Chairman Moriichi Inoue bought all outstanding shares of an affiliate of Yokohama Sogo around April, when the management of the failing department store chain announced it would step down, it was learned Thursday.
According to sources familiar with the case, Inoue's son and son-in-law bought all outstanding stock of NGC Co., a mail-order subsidiary of Yokohama Sogo, which is based in Tokyo's Shibuya Ward. Inoue was also a member of Yokohama Sogo's board.
A former Sogo executive admitted that, given the timing of the move, it could be interpreted as an attempt by Inoue to secure a new source of personal income, as he may have sensed that Sogo's failure "seemed only a matter of time."