OSAKA — Ailing retailer Mycal Corp. is expected to unveil a revised restructuring plan as early as next week in a bid to accelerate efforts to pare down its massive debts, company sources said Friday.
The revised plan, being worked out in consultation with Mycal’s main lender, Dai-Ichi Kangyo Bank, includes the front-loading of plans to close troubled stores and management reforms, the sources said.
The existing plan calls for the firm to reduce its interest-bearing debts, which stood at 1.151 trillion yen as of the end of February, to 910 billion yen by the end of August and to 750 billion yen by the end of February 2004.
To achieve that end, the plan calls for the workforce to be slashed by 2,700, about 50 loss-making stores to be closed, shares in affiliates to be sold off and outlets to be securitized.
The troubled chain decided to revamp the business reconstruction plan as early as possible.
While the pillars of the plan, such as the cut in the workforce and the closure of unprofitable outlets, will remain intact, the revised plan will include measures that are accepted by stock market participants, Mycal President Osamu Shikata said.
Mycal’s share price fell below 100 yen on Wednesday and shed another 6 yen on Thursday to end at 90 yen, marking a new low since its listing on the Tokyo Stock Exchange in October 1974.
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