Muji Operator's U.S. Unit Files for Bankruptcy
Tokyo, July 11 (Jiji Press)--The U.S. subsidiary of Japan's Ryohin Keikaku Co. <7453>, the operator of Muji brand household goods stores, filed for Chapter 11 bankruptcy protection in the United States on Friday, according to the parent firm.
Muji U.S.A. Ltd., based in New York, effectively went under due to sharp sales declines stemming from store closures during the coronavirus pandemic, Ryohin Keikaku said Friday.
The U.S. unit's liabilities totaled 64 million dollars as of the end of March.
Ryohin Keikaku, which branched out into the U.S. market in 2006, currently operates 18 Muji stores in the country. The COVID-19 crisis hit the company when its earnings had already been deteriorating in recent years due to high rents and other costs.
The U.S. subsidiary will aim to achieve a turnaround after going through legal procedures.
[Copyright The Jiji Press, Ltd.]