Japanese apparel maker Renown Inc. filed for bankruptcy protection last week after its business was affected by the COVID-19 pandemic. It filed for protection from creditors with the Tokyo district court under the Civil Rehabilitation Law. It was the first bankruptcy of a listed company in Japan since January 2019, said credit research firm Teikoku Databank.
Renown was saddled with debts totaling ¥13.88 billion ($129 million), according to Japanese media reports.Japanese apparel maker Renown Inc. filed for bankruptcy protection last week after its business was affected by the COVID-19 pandemic. It filed for protection from creditors with the Tokyo district court under the Civil Rehabilitation Law. It was the first bankruptcy of a listed company in Japan since January 2019, said credit research firm Teikoku Databank.#
The coronavirus outbreak has triggered more than 150 corporate bankruptcies in Japan, according to the research firm.
Founded in 1902, Renown’s sales at retail stores fell by 42.5 per cent in March from a year before. They plunged 81 per cent in April when major department stores, its major sales channels, suspended operations amid the pandemic.
It posted a net loss of ¥6.7 billion in the March-December period in 2019 after failing to collect ¥5 billion in outstanding debts from a Hong Kong-based affiliate of China’s Shandong Ruyi group, which holds a 53 per cent stake in Renown.
Renown came under the control of the Shandong Ruyi group in 2010 to restore its financial health.
But it struggled to widen its customer base, including younger clientele, and faced fierce competition from rivals such as Fast Retailing Co., the operator of the Uniqlo clothing chain.
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