Failed department store operator Sogo Co. made a fresh start Wednesday under the auspices of Seibu Department Stores Ltd. with the launch of a new company to oversee Sogo's 13 remaining outlets.

The new company, Sogo Inc., has its headquarters in Yokohama. It is capitalized at 10 million yen and is owned 95 percent by a Seibu Department Stores subsidiary and 5 percent by the Industrial Bank of Japan.

Ten of the 14 board members of the new firm, including President Shigeaki Wada and Vice President Hiroshi Kometani, are from Seibu Department Stores.

Beginning in March, the management firms of the 13 outlets will be merged into the new firm, company officials said.

The new Sogo plans to increase its capital by offering shares both at home and abroad, they added.

The Sogo group collapsed last July with 1.87 trillion yen in group debts and filed for protection from creditors with the Tokyo District Court.

Its rehabilitation plan, under which the number of Sogo outlets was cut to 13 from 22, won court approval last month.

Mori Trust ups stake

Shopping center operator Parco Co. said Wednesday that urban developer Mori Trust Co. will become its largest shareholder through an allotment of new shares.

The third-party allotment of 14 million shares, equivalent to 19.8 percent of all issued Parco shares, for 4.54 billion yen is part of a tieup agreement between the two companies.

The alliance is aimed at producing synergetic effects by combining the firms' knowhow regarding planning, development and management of commercial facilities in urban areas, Parco said.

Specifically, Parco will open shopping centers in buildings operated by Mori Trust.

With payment due on March 9, Mori Trust will replace Seibu Department Stores Ltd. as the biggest shareholder in Parco. Seibu will hold the second largest stake in the firm at 11.65 percent. Industry observers said the move was yet another indication of loosening ties among the Saison group, of which Seibu is the core member.

In a separate announcement, Parco said it is expecting an unconsolidated net loss of 3.8 billion yen for the current business year ending on Feb. 28.

Parco said this figure reflects the extraordinary losses it will register for the sale of group company shares and operational restructuring.

Parco had previously projected a net profit of 1.5 billion yen for the current business year.