The scandal-struck Fujiya Company has denied reports that the Yamazaki Baking Co will buy a 33.3% stake in the company for around JPY15bn (US$127.88m).

In a written statement, Fujiya said the report "was not based on information issued by our company nor an official decision made by our company."

In January, Fujiya was engulfed in a food safety scandal when it emerged that the confectioner had used out of date ingredients in the manufacture of candy.

The Nikkei business daily reported yesterday (7 March) that the company is considering shutting down 60 of its most unprofitable retail outlets. Other restructuring efforts expected in the wake of the food safety scare include the sale of assets, including its Tokyo-based headquarters. Fujiya also denied this report.