Watami, an izakaya chain whose business performance has been declining due to the effects of the new coronavirus, is making adjustments to receive capital support of about 10 billion yen from the Development Bank of Japan.
We plan to rebuild our financial base and hurry to develop businesses other than izakaya.
According to the people concerned, Watami, which operates the izakaya chain "Miraizaka", is making adjustments to receive capital support of about 10 billion yen from the Development Bank of Japan, a government-affiliated financial institution.
Capital support is expected to be provided in the form of "subordinated loans," in which voting rights are restricted, preferred shares are issued, and repayments are ranked lower than other loans, and a certain percentage is considered capital.
The government changed the rules last month so that government-affiliated financial institutions can provide loans alone in order to support the financing of companies affected by the new corona, and this system is expected to be used this time.
"Watami" has been hit hard by the spread of the new corona infection, and it is expected that the financial results for the year to March will fall into the final deficit of 11.6 billion yen. It seems that the aim is to rebuild the business and hurry to develop business formats other than izakaya such as yakiniku restaurants.