Royal Holdings, a major restaurant company that develops "Royal Host," has entered into a capital and business alliance with Sojitz, a major trading company, in order to improve the business situation that has deteriorated due to the effects of the new coronavirus, and has joined forces with financial institutions such as Mizuho Bank. We have officially announced that we will receive capital support amounting to 16 billion yen.
According to the announcement, Royal Holdings entered into a capital and business alliance with Sojitz at the board of directors meeting on the 15th to improve the business situation that deteriorated, such as the sales of the restaurant business dropping sharply due to the spread of infection, and 10 billion from Sojitz. We have decided to receive capital support of 16 billion yen, including 6 billion yen from financial institutions such as Yen and Mizuho Bank.
As a result, Sojitz is expected to become the largest shareholder of Royal Holdings, and intends to launch a growth strategy such as strengthening the overseas restaurant business by utilizing Sojitz's sales network.
In the financial results for the last year, which was also announced, the sales of the entire group were 84.3 billion yen, a decrease of 40% from the previous year, and the final profit and loss was a record deficit of 27.5 billion yen.
At an online press conference, President Yasuhiro Kurosu said, "Although the business performance was tough, we would like to recover the business performance by developing new businesses through a partnership with Sojitz, in addition to structural reforms such as cost reduction."
President Sojitz Fujimoto "I want to develop my business by making the most of my know-how."
President Masayoshi Fujimoto of Sojitz said at a meeting held on the 15th about this alliance, "By utilizing the know-how of the central kitchen that intensively cooks the dishes offered at the stores owned by Royal Host, businesses such as convenience stores and delicatessen in Southeast Asia In the future, he said that he would like to increase the shareholding ratio of Royal Holdings to more than 20% and group it to strengthen overseas business.