NEW YORK – Japan’s Pepper Food Service Co., which runs the Ikinari Steak restaurants, said Friday its American depositary receipts will be delisted from the U.S. Nasdaq stock market by autumn.
Pepper Food made its Nasdaq debut in September last year, becoming the first Japanese restaurant chain to do so. The company aimed to increase its awareness in the United States through the listing.
Pepper Food has judged that “it does not make business sense to remain listed on the Nasdaq market” as the company is struggling in the United States, the company said.
The company will stay listed on the Tokyo Stock Exchange’s first section.
Following its success of the chain in Japan, Pepper Food opened its first Ikinari Steak outlet in New York in 2017 and increased the number of restaurants there,
However, it announced in February a plan to shut seven of its 11 outlets in New York due to a decrease in the number of customers. The remaining four have been converted into Pepper Lunch restaurants, another Pepper Food chain.
Pepper Food incurred a consolidated net loss in 2018 due to special losses mainly caused by the closure of restaurants in the United States.