COVID-19 Sends Apparel Maker Renown into Bankruptcy
Tokyo, May 15 (Jiji Press)--Japanese apparel maker Renown Inc. <3606> said Friday that it has effectively gone bankrupt with debts totaling 13.8 billion yen, following a slump in sales due to the COVID-19 epidemic.
Renown is the first Japanese listed company that has failed because of the coronavirus crisis. More firms are expected to feel the pinch in coming days.
Subsidiary Renown Agency Inc. filed for civil rehabilitation procedures for the parent as a creditor with Tokyo District Court, which approved the start of the process. Renown will look for a sponsor under its administrator.
Renown will be delisted from the Tokyo Stock Exchange on June 16.
Renown was established in Osaka Prefecture in 1902 as a textile wholesaler. The company became famous with a popular television commercial song and was listed on the TSE's first section in 1969.
[Copyright The Jiji Press, Ltd.]