Royal Holdings, a major restaurant chain that develops royal hosts, receives a total of 16 billion yen in capital support from major trading company Sojitz and others in order to improve the business situation that deteriorated due to the drop in sales due to the impact of the new coronavirus. We have solidified our policy.
Royal Holdings expects that sales of its main restaurant business and in-flight meal business will decline due to the spread of the new coronavirus infection, and that the final deficit will reach 28 billion yen in the last year's financial results.
According to the people concerned, Royal Holdings is adjusting to accept capital support of 16 billion yen from Sojitz, a major trading company, and financial institutions.
Of these, Sojitz is expected to invest 10 billion yen in the form of underwriting new shares issued by Royal, and Sojitz is expected to become Royal's largest shareholder.
Sojitz plans to acquire 60% of the shares of its subsidiary, which operates the in-flight meal business of Royal, and the two companies will consider business alliances such as strengthening overseas store openings.
At financial institutions, Mizuho Bank and Development Bank of Japan are considering investing a total of 6 billion yen by underwriting preferred stocks with large dividends at the expense of restricted voting rights.
While the food service industry has been hit hard by the new coronavirus, the movement toward rebuilding is in full swing through alliances across industries.