The impact of the new coronavirus also extends to corporate groups that are responsible for the local economy.
It was found that the Ichibata Group, which develops businesses such as railways and fixed-route buses in Shimane Prefecture, will embark on drastic management improvement measures centered on strengthening its financial base and reducing the number of employees in the group.
Under the holding company "Ichibata Electric Railway" headquartered in Matsue City, the Ichibata Group develops businesses such as railways, fixed-route buses, and department stores, mainly in the eastern part of Shimane Prefecture.
Although it is one of the leading corporate groups in the San'in region of Shimane and Tottori prefectures, it posted a final deficit of more than 500 million yen in the fiscal year ended March 31, last year, and this year's business performance also deteriorated further due to the influence of the new coronavirus. I am concerned.
Under these circumstances, according to the people concerned, the Ichibata Group decided to embark on drastic management improvement measures in consultation with the main banks.
Specifically, the company plans to strengthen its financial base by receiving a loan of more than 2 billion yen called a "subordinated loan," which can be regarded as part of the capital.
On top of that, we plan to streamline management by soliciting a total of 50 voluntary retirements from electric railway and bus companies within this fiscal year and reducing costs.
Employees who applied for voluntary retirement will be provided with support for reemployment.
Local companies are facing a difficult business environment due to the shrinking market due to the declining population and the impact of the new coronavirus, and how to support the local economy through the recovery of business performance has become an issue again. I am.