The Osaka District Court has decided to begin rehabilitation procedures for failed footwear maker Secaicho Corp. under the Corporate Rehabilitation Law, an administrator of the firm said Monday.
Secaicho, which filed for court protection from creditors under the rehabilitation law in July, is expected to hold a meeting with creditors in Osaka on Monday and hopes to come up with a revival plan by April 30, the administrator said.
The administrator is currently in talks with several companies, including a Hong Kong shoemaker that holds a stake in the failed firm, to find a sponsor.
On July 30, Secaicho, listed on the first section of the Osaka Securities Exchange, sought court protection for itself and four subsidiaries, including SFC Corp. and SEC Polymer. The combined debt of the five is estimated at 10 billion yen.
Based in Osaka, Secaicho is known for brands such as Panther and Champion. Secaicho's performance has taken a beating from an influx of cheaper shoes made in China and other countries in recent years.