Leopalace 21 83.0 billion yen in deficit due to swelling of building repair costs 13:51 June 4

Leopalace21, which has found incomplete construction of apartments, announced that the final profit and loss will be a loss of 80.3 billion yen in the fiscal year ending March 31, due to the swelling of renovation costs for the building.

According to the earnings forecast announced by the company on the 4th, the sales for the year until March this year was 3.1% less than the previous forecast to 433.5 billion yen, and the final profit forecast is also from the deficit of 30.4 billion yen. Expand to a deficit of 80.3 billion yen.

The red letters are for the second consecutive year.

Reasons for expanding deficit The company found that there were deficiencies such as the lack of walls to prevent the spread of fire in the event of an increase in repair costs for the building, and the rent rate of rental apartments was sluggish, resulting in a decrease in rental income. Because it is.

The company also announced that it will reduce executive compensation for the current fiscal year by 35% to 60% to clarify the responsibility for the deterioration of business performance.

In addition, according to the person concerned, we are considering recruiting voluntary retirement of 1,000 people, which is 18% of all employees.

In addition, it is said that there is no prospect of finishing the renovation work on the property where the construction defect was found, so the company ``reviewed the refurbishment plan after checking the transition of the new coronavirus infection and its impact, I will report it again."