Leopalace21 Maps Out Structural Reform Plan

Economy

Tokyo, June 5 (Jiji Press)--Japanese apartment rental giant Leopalace21 Corp. <8848> unveiled a structural reform plan on Friday, seeking to recover from a drop in earnings stemming from its shoddy construction scandal.

The embattled company will withdraw from new apartment construction and cut around 1,000 jobs through a voluntary redundancy program, among other measures.

Leopalace21 logged a consolidated net loss of 80,224 million yen for the business year that ended in March, bigger than the loss of 68,662 million yen in the previous year.

The latest loss stemmed from decreased rent income reflecting a fall in the apartment occupancy rate and increased repair costs for defective apartments. The company’s equity ratio as of the end of Match stood at only 0.7 pct.

Leopalace21 predicts a net loss of 8 billion yen for the fiscal year ending in March 2021, due to low occupancy rates.

[Copyright The Jiji Press, Ltd.]

Jiji Press