Kawatoku (Morioka City, capital 50 million yen, president Yasuyuki Aramichi) has a business reconstruction plan. Led by Renaissance Capital (Tokyo), a small and medium-sized business revitalization fund, with the support of financial institutions such as local banks in the prefecture, coordination is underway to establish a new company to take over the business. It is expected that the long-established department store will continue to operate under the brand name of “Kawatoku,” which has been popular for many years, and will be reborn as a store that meets customer needs.
According to people familiar with the matter, main banks such as Bank of Iwate, Kita-Nippon Bank, Tohoku Bank, etc. have made adjustments and agreed on the reconstruction plan with some exceptions. Under this plan, some of the credits held by the financial group will be sold to the fund. The plan is to set up a new company that will succeed the business by investing in the fund.
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For the full article, please see the Iwate Nippo paper dated December 29.
