JAPAN: Ito-Yokado, Wal-Mart to share a third of Mycal’s bankrupt stores

Japan’s largest supermarket chain, Ito-Yokado Co, will takeover around a dozen outlets of the failed retailer Mycal Corp in the Kansai area, a source revealed on Saturday.

Mycal, which was forced to file for court protection from its creditors on 14 September when the Dai-Ichi Kangyo Bank refused to finance a rescue package, apparently gave preferential rights to Ito-Yokado and US-based Wal-Mart because two companies’ interests will not clash.

Tokyo-based Ito-Yokado and Wal-Mart now stand to acquire nearly a third of Mycal’s stores between them. Wal-Mart is focusing on around 30 acquisitions in the Tokyo area.

Aeon Co

(formally Jusco Co), another supermarket chain operator, was interested in buying about 50 Mycal outlets but is reportedly unhappy with the prices it was quoted, compared to those offered to Wal-Mart.

The remainder of Mycal stores are to be sold to other retailers in local areas.