Huis Ten Bosch Co. announced Thursday a restructuring plan that includes jobs cuts, debt forgiveness by banks and the closure of its first theme park in Sasebo, Nagasaki Prefecture.
Under the revised five-year business plan through the 2004 business year, the company will cut roughly 400 jobs by the end of that year and close Nagasaki Holland Village this Oct. 21.
Huis Ten Bosch President Michitake Moriyama told reporters that Industrial Bank of Japan and other creditor banks have agreed to forgive billions of yen in loans and allow the firm to reduce interest payments.
The Nagasaki Holland Village was launched in 1983, but its business performance has been hurt by another theme park that the company opened in March 1992 on 152 hectares of reclaimed land in Omura Bay in the same prefecture.
The second park opened by Huis Ten Bosch is named after the company and is modeled on the brick-paved streets of 17th-century Holland. The waterfront park, which features hotels, restaurants and leisure facilities, has remained in the red since opening.
"We will endeavor to strengthen our business bases," Moriyama said, adding that he will look for ways to differentiate Huis Ten Bosch, meaning "House in the Forest" in Dutch, from other theme parks.
The number of visitors at Nagasaki Holland Village reached 2 million in 1990, but fell to 220,000 last year.
The company had aimed to climb into the black next business year. However, its pretax losses expanded when it closed its books for 2000, leading to the resignation of its president, Masaji Wasai.
His successor, Moriyama, has consulted with creditors on how to reconstruct the company.