Struggling Japanese retailer Daiei has forecast a net loss of ¥510bn (US$4.9bn) for the year to the end of February.

Japan’s third-largest retailer, which is currently being rehabilitated by the Industrial Revitalisation Corporation of Japan, is expected to record a ¥500bn charge related to the closure of more than 50 stores, reported The Financial Times.

Toshio Hasumi, Daiei’s president, said the situation had hit staff morale and customer loyalty.

“Delays in deciding whether to tap the IRCJ for assistance caused turmoil for customers as well as employees,” he was quoted by the FT as saying.