Business / Corporate

Otsuka Kagu in tie-up talks with Taiwanese group

JIJI

Struggling furniture retailer Otsuka Kagu Ltd. is negotiating a tie-up with Taiwan’s Abico Group in hopes of achieving a turnaround, informed sources have said.

Otsuka Kagu aims to obtain financial and business assistance from a number of Taiwanese companies through the Abico Group’s powerful network, the sources said.

Abico has technology companies under its wing. It has close relations with many Japanese companies after starting business as a sales agent for Canon Inc. in the 1960s.

But Otsuka Kagu is also discussing strengthening its business and capital alliance with meeting room rental service provider TKP Corp. formed in November last year.

The furniture retailer has logged a year-on-year sales drop for the 12th straight month due to intensifying competition from rivals focusing on low-priced products and negative effects of a feud in the founding family.