Leopalace21, which was found to have inadequate construction of apartments in the past, suffered a slump in the occupancy rate due to the effects of the new coronavirus. Is insolvent, which exceeds assets by 8.4 billion yen.
Leopalace21 announced on the 14th that its sales for the year to March were 408.9 billion yen, down 5.7% from the previous year, and the final loss was 23.6 billion yen.
This is mainly due to the decrease in occupancy of rental apartment companies and students due to the influence of the new coronavirus, and the increase in repair costs for properties where construction defects have been discovered.
In response to the difficult business conditions, the company received approximately 57.2 billion yen in support from a fund under the SoftBank Group, but as of the end of March, its liabilities exceeded its assets by 8.4 billion yen.
For this reason, the company will reduce its capital to 100 million yen, which is considered to be a small and medium-sized enterprise, to reduce the tax burden and strengthen its financial base, and by continuing to reduce expenses such as personnel expenses, next year = 2022 I want to eliminate insolvency.