"Leopalace21" Expected insolvency of 11.8 billion yen due to poor business performance September 28, 11:04
Leopalace21, whose business performance is deteriorating due to the discovery of construction defects in apartments and other facilities, announced that as of the end of June, its liabilities are expected to exceed its assets by 11.8 billion yen.
The company is looking for sponsors to continue its business.
According to the earnings forecast for the three months from April to June announced by Leopalace21 on the 28th, the final profit and loss of the entire group is expected to be 14.2 billion yen.
As a result of the worsening financial situation, it is expected that liabilities will exceed assets for the first time since the stock was listed in 2004, resulting in an insolvency of 11.8 billion yen.
The major deterioration in the finances was due to a series of construction defects such as no wall to prevent the spread of fire, which led to an increase in repair costs, a slump in the occupancy rate of rental apartments, and income. Because it is decreasing.
The company says it has working capital for the time being and is looking for sponsors to rebuild its finances and continue its business.