Itochu Corp. said it will acquire the entire stake in the holding company of Edwin Co. to support the restructuring of the financially troubled jeans maker.
Edwin is expected to be made into a subsidiary of Itochu by the end of May. Itochu is set to extend ¥36 billion in loans to Edwin and inject ¥10 billion through the purchase of new shares, while asking Edwin's main banks to forgive some ¥23 billion in debts, according to sources.
Edwin's financial condition deteriorated due to intensifying competition and the failure of its securities investments in 2012. The company produces original jeans brands, including Edwin and Something. It also holds licenses to handle global brands, including Lee and Wrangler.