Beleaguered Japanese supermarket chain Daiei Inc. is to receive ¥520bn (US$3.86bn) from its three principal creditor banks, a ¥100bn from the initial rescue package.
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According to sources quoted in the Daily Yomiuri, UFJ Bank will provide half the total amount, with Sumitomo Mitsui Banking Corp. and Fuji Bank providing the remainder. The cash does not come strings-free. In return, Daiei is expected to close more of its loss making divisions and outlets. It will now close 70 stores instead of the 50 initially agreed.
The extra ¥100bn has been awarded to enable Daiei to restore consumer and investor confidence, sources said, and has also been influenced by the Japanese government’s measures to fight deflation. This has included urging banks to dispose of non-performing loans and increase loans to small and midrange companies.
