MIYAZAKI – The administrator of the failed operator of the Seagaia resort complex plans to dismiss all employees in late July and rehire some of them later, Seagaia officials said Tuesday.
They quoted Yasumasa Sato, the court-appointed administrator for Phoenix Resort Ltd., as telling employees of three Seagaia group firms that he asked U.S. investment fund Ripplewood Holdings LLC to safeguard jobs at Phoenix and its two group firms, but that some jobs would have to be cut.
Ripplewood was chosen Friday by the Miyazaki District Court as a sponsor to head the rehabilitation of Seagaia and announced plans to invest about 30 billion yen over the next four years.
Seagaia and its two group firms had some 2,350 employees, including part-time and temporary workers, as of March 1.
Hidehisa Numata, head of the Seagaia group labor union, said, “I’m surprised as I haven’t heard anything formally. I want to talk it over with them after seeing a concrete plan.”
The resort facility in Miyazaki Prefecture, which boasted a 43-story building, golf courses, a zoo, tennis courts and the world’s largest indoor pool, failed to draw visitors, forcing Phoenix Resort to file for court protection from creditors Feb. 19.
Phoenix Resort was set up in December 1998 by the Miyazaki Prefectural Government — with a 25 percent stake — the Miyazaki Municipal Government and 11 private companies.
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