Japanese apparel maker Renown Inc., which had sought court protection to revive its century-old business, will go into liquidation amid plunging sales due to the novel coronavirus pandemic, its lawyers said Monday.
The Tokyo District Court last Friday decided to discontinue court protection after a sponsor could not be found. The liquidation procedure is expected to begin after about a month, according to credit research firm Tokyo Shoko Research.
The textile company had undertaken restructuring measures since filing for protection from creditors in May with debts totaling ¥13.88 billion ($133 million).
In August, Renown said it would sell some of its main brands including D'urban and Aquascutum to group companies of Koizumi Co., an apparel company in Osaka, while closing shops of other brands such as Arnold Palmer Timeless by the end of last month.
The Japanese apparel maker, founded in 1902, once enjoyed brisk sales at its sections in major department stores, but sales began tumbling after the burst of the nation's asset bubble in the early 1990s.
Renown fell under the control of the Chinese textile Shandong Ruyi group in 2010 to restore its financial health, but its business was hit hard by the nationwide closure of major department stores to curb coronavirus infections.