A proxy fight between restaurant chain operators Ootoya Holdings Co. and Colowide Co. has been heating up ahead of the latter's Aug. 25 takeover deadline, even as both struggle to ride out the coronavirus pandemic.

Colowide, which runs izakaya pubs and Gyukaku grilled beef restaurants, launched last month a takeover bid for Ootoya, the operator of Japanese-style set-menu eatery chain restaurants, seeking to improve the loss-making operator's performance through cost-cutting and improved procurement and food distribution synergies.

Before the takeover bid, Colowide held a 19.16 percent stake in Ootoya after obtaining shares last year from Mieko Mitsumori, the widow of Ootoya founder Hisami Mitsumori, who died in 2015, and their oldest son Tomohito, 31, who were in conflict with Ootoya's incumbent management.