Otsuka Kagu Eyeing Capital Injection from Japan-China Fund
Tokyo, Feb. 13 (Jiji Press)--Struggling Japanese furniture retailer Otsuka Kagu Ltd. <8186> is considering receiving several billions of yen in investment from a fund including Japanese and Chinese companies, informed sources said Wednesday.
With the fresh capital, Otsuka Kagu, which is projected to have suffered a net loss for the third straight year in the business year to December 2018, aims to improve its financial health and pave the way for its reconstruction, the sources said.
The company is also looking at the possibility of tying up with major Japanese electronics retailer Yamada Denki Co. <9831> for domestic operations.
In addition, Otsuka Kagu is mulling cooperation with major Chinese furniture retailer Beijing Easyhome Yundi Huixin Retail Chain Co. in various fields, including e-commerce. It will continue talks on receiving investment from the Beijing-based company.
Otsuka Kagu President Kumiko Otsuka took the helm of the company in 2015, after defeating her father in their management feud. Due to severe competition from rivals, however, sales at Otsuka Kagu have fallen substantially.
[Copyright The Jiji Press, Ltd.]