Yamakataya Implements “Business Revitalization ADR” to Sustain Operations and Restore Management | NHK Miyazaki Prefecture News

Yamagataya, a historic department store in Kagoshima City, is facing financial difficulties due to the impact of the new coronavirus. The company, founded in 1751, has been in the red for six consecutive years, with a total debt of 36 billion yen. To address this, Yamagataya is undergoing a private liquidation process called “Recovery ADR” with the support of its financial institutions.

The company’s restructuring plan includes turning some group companies into holdings and eliminating remuneration for top executives. Despite these changes, Yamagataya assures that there will be no impact on employment.

Governor Kono expressed his hope for the store’s continued operation, emphasizing its importance in the central city area. Customers of Miyazaki Yamakataya also voiced their concerns and support for the store, citing its unique offerings and sentimental value.

The “Business Rehabilitation ADR” process involves coordination between the company, creditors, and third-party professionals to achieve business revitalization. This approach allows for continued business operations and transparency in the restructuring process.

Yamagataya and its supporting financial institutions will review the proposed revitalization plan at a meeting later this month. The company remains committed to rebuilding its business while maintaining its presence in the community.