Kawatoku (Morioka City, capital 50 million yen, chairman Yasuyuki Aramichi) has a corporate reconstruction plan. Led by Renaissance Capital (Tokyo), a fund for the recovery of small and medium-sized enterprises, with the support of financial institutions such as local prefectural banks, coordination is underway to set up a new company that will take over the business. The long-standing department store is expected to continue operating under the popular “Kawatoku” brand for many years and be reborn as a store that meets customer needs.
According to people familiar with the matter, major banks such as Bank of Iwate, Kita-Nippon Bank, Tohoku Bank, etc. they made changes and agreed on the reconstruction plan with some exceptions. Under this plan, part of the loans held by the financial group will be transferred to the fund. The plan is to create a new company that will succeed the business by investing in the fund.
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For the full article, see the December 29 Iwate Nippo newspaper.
