Rena, a major Japanese clothing manufacturer, is still in trouble after becoming a subsidiary of China’s Shandong Ruyi Group. After filing for bankruptcy protection in May, it received a notice from the Tokyo District Court to revoke its license at the end of October. The bankruptcy protection procedures initiated by the Civil Rehabilitation Law will be carried out.
“Asahi Shimbun” reported that Renown, a 228-year-old company, applied to the Tokyo District Court in May 2020 to initiate bankruptcy protection procedures under the Civil Rehabilitation Law. , received a notice from the Tokyo District Court on October 30 to abolish the civil rehabilitation procedures. Rena has basically completed the transfer of its business. Since the operation is no longer profitable, it will go through bankruptcy procedures. It is expected to accept the decision to start bankruptcy in about one month.
Rena is famous for selling gentleman’s clothing brand DURBAN, British high-end clothing brand Aquasdfsssdfsscutum, casual clothing brand Arnoldpasdfssdfslmertimeless and other clothing. It merged with DURBAN in 2004 and accepted Shandong Ruyi in 2010. Technology Group injected capital and became a subsidiary of Shandong Ruyi three years later.
Rena decided in August this year to sell five major well-known brands such as DURBAN and Aquasdfssdfsscutum to its peer Koizumi Group. Other brand clothing stores have been closed before the end of October.
“Nihon Keizai Shimbun” reported in mid-May that Rena’s total liabilities were approximately 13.8 billion yen, and there were 905 employees as of the end of 2019. The Tokyo Stock Exchange announced in mid-May that Rena stock would be listed as a consolidation stock and will be delisted on June 16.
Rena was once the world’s largest clothing company in the 1990s. Because it took the high-end clothing route, it mostly sold its products in department stores and other places. It became popular in online shopping and affordable prices. After the rise of clothing, the business fell into trouble.
After Shandong Ruyi Group injected funds in 2010, Ruina’s operations have not improved. Due to the decline in brand power and serious operating losses, Shandong Ruyi Group’s capital recovery was not smooth, with a loss of 6.7 billion yen from March to December 2019.
With the global pandemic of the new crown epidemic, Reina’s store sales in April dropped by 80% compared with the same month last year. Rena became the first Japanese listed company to file for bankruptcy protection after the spread of the new coronavirus epidemic. </p
