Leopalace 21 Closed to approximately one-quarter of directly managed stores August 7 22:11

Leopalace21, whose construction has been found to be inadequate and its performance is deteriorating, has announced that it will reduce the number of directly managed stores by about a quarter by the end of this month. We intend to promote rationalization of management and urgently recover the deteriorated business results.

Leopalace 21 has a final deficit of more than 80 billion yen in the fiscal year ended March 31, due to the fact that the cost of renovation of properties where construction defects were found increased and the occupancy rate of rental apartments was sluggish. It was

For this reason, the company is promoting the rationalization of management by consolidating directly managed stores that perform operations such as renting rooms, and announced that it will close 26 directly managed stores in Japan by the end of this month. did.

With this closure, the number of directly managed stores, which was over 180 at the end of last year, will decrease by about a quarter.

In addition, more than 1,000 people, about 18% of all employees, have accepted the voluntary retirement for employees over the age of 35.

The company plans to pay a special retirement allowance in addition to the normal retirement allowance and support reemployment, and will record an extraordinary loss of about 2.5 billion yen in the settlement of accounts for three months until the end of June this year. I am deciding.