Japanese clothing firm Renown collapses
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Heritage Japanese clothing firm Renown has filed for bankruptcy. The company is best known for its D’Urban and Arnold Palmer brands, although business has been in decline since its heyday in the 1990s due to increasing competition and the rise of e-commerce. It was once one of the largest apparel manufacturers on the globe.
According to a report in Nikkei, the 118-year-old firm – now under the majority ownership of Chinese textiles and clothing firm Shandong Ruyi – has become Japan’s first such victim of the Covid-19 pandemic, cauterized from its revenue stream by the closures of department stores and regular retailers.
The bankruptcy was approved on Friday, the same day it was filed with the Tokyo District Court, listing ¥13.9 billion (US$130 million) in liabilities. Renown had previously posted a net loss of ¥6.7 billion ($62.55 million) in the last financial year. Shares in the firm are now likely to be delisted from the first section of Tokyo’s stock exchange.
Analysts expect the clothing firm Renown to take about a month before the company identifies a turnaround partner to enable it to resume business.
Questions & Answers
Q.What are Renown's most recognised brands?
What are Renown's most recognised brands?
The firm is best known for its D’Urban and Arnold Palmer brands. Its business has been declining since the 1990s due to increased competition and the growth of e-commerce.
Q.What is the primary reason Renown's collapse is linked to the Covid-19 pandemic?
What is the primary reason Renown's collapse is linked to the Covid-19 pandemic?
The company was cut off from its revenue stream due to the widespread closures of department stores and regular retailers. This made it Japan's first major victim of the pandemic.
Q.What is the total value of liabilities Renown listed when filing for bankruptcy?
What is the total value of liabilities Renown listed when filing for bankruptcy?
Renown listed liabilities totalling ¥13.9 billion, which is equivalent to US$130 million. This filing was approved on Friday by the Tokyo District Court.
Q.Who is the majority owner of Renown?
Who is the majority owner of Renown?
The Chinese textiles and clothing firm Shandong Ruyi holds the majority ownership of Renown. The Japanese firm is 118 years old and was once a global apparel manufacturing giant.
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