Watami, which operates izakaya chains and other facilities whose business performance has been declining due to the effects of the new coronavirus, announced that it will receive capital support of 12 billion yen from the Development Bank of Japan, a government-affiliated financial institution.
We are planning to invest the funds we have obtained to hurry to switch from an izakaya to a yakiniku restaurant.
According to the announcement, "Watami" will receive capital support of 12 billion yen by issuing preferred stock with limited voting rights undertaken by a fund managed by the Development Bank of Japan.
Watami's financial results for the year ending March are in the red with a final loss of 11.5 billion yen, and the company plans to urgently switch to a new business format after strengthening its financial base.
The funds obtained will be used when converting izakaya restaurants to yakiniku restaurants where a certain amount of sales can be expected even in the event of Corona, or when opening new restaurants. Five years later, by 2026, 130 yakiniku restaurants will be opened. I'm planning to increase it.
In March, the government introduced a new system to support the financing and strengthening of the financial base of the restaurant industry affected by the new corona, and the Development Bank of Japan has so far reached a scale of 300 billion yen. It means that we have received consultations.