Laox Co., Ltd. announced that it will close 12 of the 24 stores it operates, Reuters reported citing the company. The move is part of its strategy to reduce costs and stabilise liquidity. It will close three stores in Hokkaido, six in Kyushu and one each in Tokyo, the Kinki western region and Okinawa, the Japan Times reported. Information regarding the closure dates will be announced when they are finalised. In addition to this, the retailer has revealed plans to exit from Okinawa Prefecture and Kyushu. The company has blamed the decline in customers visits from China due to Covid-19 as the reason for shut down of stores. The company recorded a net loss for the second consecutive year in the year ended in December 2019. Last month, the company announced the Notice of Calling for Voluntary Retirement as part of restructuring efforts. The call was made between 17 February and 6 March. The company will record the special severance payments and costs associated with the retirement as an extraordinary loss in the consolidated accounts in the fiscal year ending 31 December. Earlier this month, the US business of Japanese minimalist lifestyle brand Muji reportedly sought bankruptcy protection due to the impact of coronavirus pandemic.
Laox Holdings Co Ltd is a Japan-based company mainly engaged in domestic retail business, overseas business, lifestyle fashion business, and asset business. The Company operates through four segments. The Domestic Retail segment sells mainly food and cosmetics in domestic shops through real shops and online stores. The Overseas segment focuses on high-quality Japanese products and develops trade, global e-commerce (EC) and support for expansion into China through various channels and networks, whether direct-to-consumer (BtoC) or business-to-business (BtoB), real or online. The Lifestyle Fashion segment sells gift-related products through multiple sales channels. The Asset segment is engaged in the operation and management of commercial complexes, restaurants, and cultural events, and the sale and brokerage of real estate.