Tadashi Nakauchi, founder and majority owner of beleaguered Japanese supermarket chain Daiei, has been ousted by the company’s board.

The Daily Yomiuri newspaper learned last week that Nakauchi, who was Daiei’s director for 43 years until January of last year when he withdrew from frontline management, has been forced to fully retire from all his other posts within the company. These include chairman of the board of directors for the company’s professional baseball team, the Daiei Hawks.

Furthermore, his hefty ¥2bn (US$15m) retirement bonus will not be paid and it is likely that he will be asked to forfeit various company perks such as his home and cars.

The move has been seen as a bid by Daiei to slash its operating costs, clarify management responsibility and streamline its business, imperative if the troubled company is to convince its main creditor banks, UFJ Bank, Fuji Bank and Sumitomo Mitsui Banking, to write off its massive loans and offer essential financial support of more than ¥400bn.

The company’s creditors have insisted that Nakauchi take responsibility for Daiei’s dire situation.