Kumiko Otsuka will step down as president of rehabilitating furniture retailer Otsuka Kagu Ltd. on Dec. 1, the company said Wednesday.
The 52-year-old president offered her resignation to take responsibility for the company’s prolonged earnings slump. Chairman Tsuneo Mishima, 61, who is originally from electronics retailer Yamada Denki Co., a capital alliance partner of Otsuka Kagu, will concurrently serve as president.
“Although we expect to remain in the red for the current fiscal year, our business is improving greatly year on year and we are close to setting out a path toward a turnaround in the next fiscal year,” Otsuka Kagu said in a statement.
Otsuka offered to resign as president and director to “clarify responsibility for past performances,” and the board accepted the offer, the company said.
Struggling Otsuka Kagu received investment from Yamada Denki in December last year and has since been working on rehabilitation under the leadership of the electronics seller. The furniture retailer has yet to get out of the red, however, despite intensive efforts to draw customers including selling home appliances that go well with its furniture items.
For the current fiscal year ending in April 2021, Otsuka Kagu is bracing for a net loss of ¥2.89 billion, according to its earnings estimates released Wednesday.
Otsuka, a daughter of Katsuhisa Otsuka, the founder of Otsuka Kagu, first became president of the company in March 2009 to succeed her father.
She was once demoted to the post of director but returned to the presidency in 2015 after winning a boardroom fight with Katsuhisa Otsuka over control of Otsuka Kagu. She had been unable, however, to achieve a turnaround in the company’s performances.
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