Struggling textile maker Kanebo Ltd. has decided to name Takehiko Ogi, an outside board director of Kanebo Cosmetics Inc., a firm spun off from Kanebo in May, as its president, sources close to the reshuffle said Saturday.
The appointment is expected to take effect Monday. It comes after a financial scandal involving Kanebo's former management came to light last week.
Kanebo is now under reconstruction with support from the Industrial Revitalization Corp. of Japan.
Ogi, a former bureaucrat in the Ministry of International Trade and Industry, joined the IRCJ in July.
He has also been serving as an outside director of Kanebo Cosmetics since then.
Akiyoshi Nakajima, 54, the current president of Kanebo Ltd., will become its chairman with the right to represent the company, the sources said.
On Thursday, Kanebo President Nakajima suggested the company is considering filing criminal and civil complaints against its former management on suspicion of concealing up to 30 billion yen in losses for the business years ended in March 2002 and March 2003.