Ryohin Keikaku, the company behind ‘MUJI’, is to carry out rehabilitation procedures for its consolidated subsidiary, MUJI Europe Holdings.
The company oversees operations in 11 European countries, running 36 stores through direct management and wholesale, in addition to conducting online sales. The impact of the COVID-19 pandemic has led to a downturn, resulting in an increased indebtedness to the parent company due to borrowing and the cost of goods. As of the end of August 2023, the debt had exceeded by 33 million British pounds.
By liquidation, the debts between the parent company and the subsidiary will be settled, and business will be inherited by MUJI Europe, allowing the continuation of operations in Europe. Measures such as withdrawing from unprofitable stores and reviewing cost structures will also be undertaken to strengthen the business and financial foundations.
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