Japan's Shidax to Sell Karaoke Business to Rival B&V
Tokyo, May 31 (Jiji Press)--Japan's Shidax Corp. <4837> has announced a plan to sell an 81 pct stake in a subsidiary that runs karaoke business to Tokyo-based rival B&V Corp. on June 7.
Shidax will sell its stake in Shidax Community Corp., along with its financial claims against the subsidiary, to B&V, which operates the Karaoke Kan karaoke bar chain. The price has not been fixed.
Shidax ran 182 karaoke bars in Japan as of the end of March.
The firm decided that it is difficult to turn around the subsidiary, as its losses inflated mainly due to a decrease in demand for karaoke after-parties among corporate employees and the spread of solo karaoke users.
After the sale, Shidax will continue managing customers' personal information and delivering food served at the Shidax karaoke outlets, whose name will remain intact.
[Copyright The Jiji Press, Ltd.]