Supermarket chain Nagasakiya Co., currently undergoing court-mandated rehabilitation, has compiled an installment plan to pay some of its debt over 16 years, the company said Monday.
The process will pay off about 70 billion yen of its more than 400 billion yen debt, company officials said.
The package also includes a 100 percent cut in the Tokyo-based retailer’s capital, which will affect common shares. Nagasakiya will receive an investment of 4 billion yen from Kurahuto Co., a major shareholder in Nagasakiya’s sponsor company Kyoden Corp., a manufacturer of printed circuit boards based in the town of Minowa, Nagano Prefecture.
The retailer wants to submit the plan to the Tokyo District Court by the end of March, but ongoing discussions with financial institutions could delay submission into April.
Nagasakiya said in November that it would close 31 of its 84 outlets to cut operating losses. One other outlet later left the chain.
On Monday, Nagasakiya said it would close three more stores — two in Tagajo and Sendai, Miyagi Prefecture, on Sept. 30, and another in Wakayama on Nov. 17 — due to poor sales.
Nagasakiya will discuss the fate of the three stores’ 260 employees, including part-timers, with its union.
The three closures will bring the total number of Nagasakiya outlets to 49.
Nagasakiya filed for bankruptcy protection under the Corporate Rehabilitation Law with the Tokyo District Court in February 2000.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.