CCC to take over 32 of Dai-Ichi Katei Denki's stores.

TOKYO, May 15 Kyodo

Failed consumer electronics retailer Dai-Ichi Katei Denki Co. said Wednesday that Culture Convenience Club Co. (CCC) will take over 32 of its 42 directly owned stores.

The two companies also agreed in ongoing talks that CCC will employ the staff of Dai-Ichi Katei, about 310 in total, an official at the Tokyo-based consumer electronics retailer said.

Details on when and how CCC will take over Dai-Ichi Katei's stores have yet to be decided, the official said.

Osaka-based CCC, which sells and rents videos, CDs and other entertainment products through its Tsutaya franchise store chain, is looking to benefit from taking over stores of Dai-Ichi Katei, concentrated in the Tokyo metropolitan area.

Dai-Ichi Katei said April 19 it has received approval from the Tokyo District Court to begin rehabilitation procedures under the Civil Corporate Rehabilitation Law. It must submit a restructuring plan to the court by July 17.

CCC has won exclusive rights to negotiate with Dai-Ichi Katei to sponsor its rehabilitation efforts.