Renown, a large Japanese clothing company with more than a century of history, announced on May 15, 2020 that it had applied for bankruptcy protection to the Tokyo District Court. This is after the spread of the new coronavirus epidemic. , the first case of a Japanese listed company filing for bankruptcy protection.
Rena, founded in 1902, is famous for selling gentleman’s clothing brand DURBAN, British high-end clothing brand Aquascutum, casual clothing brand Arnold palmer timeless and other clothing. In 2004, it cooperated with DURBAN merged, received capital injection from Shandong Ruyi Group in 2010, and became a subsidiary of Shandong Ruyi three years later.
Investor. The Tokyo Stock Exchange announced on May 15 that Reina 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. However, because it took the high-end clothing route, it mostly sold its products in department stores and other places. With the rise of affordable fashion clothing, business is facing difficulties.
After Shandong Ruyi Group injected funds in 2010, Ruina’s operations have not improved. Due to the decline in brand power, severe operating losses, Shandong Ruyi Group has difficulty in recovering funds, with a loss of 6.7 billion yen from March to December 2019.
As the COVID-19 epidemic spreads globally, the Japanese government announced two waves of emergency declarations on April 7 and 16, extending to the entire country of Japan. People are advised to go out as little as possible. Most of the department stores and shopping malls where Rena has set up counters or rented storefronts are also temporarily closed.
Rena’s store sales in April were 80% lower than the same month last year. The sharp drop in revenue caused Rena’s capital allocation to deteriorate rapidly, and it eventually went to the Tokyo District Court to apply for bankruptcy protection. .
