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Failed retailer Mycal rejects Izumiya's offer to buy outlets.

OSAKA, Oct. 11 Kyodo

Supermarket chain operator Izumiya Co. said Thursday failed Mycal Corp., another supermarket chain, has turned down its offer to take over some of Mycal's outlets.

Norio Hayashi, president of Osaka-based Izumiya, told reporters his company offered to buy some 20 of Mycal's stores in Osaka, Kyoto and Hyogo prefectures.

But Mycal's financial adviser, Nikko Salomon Smith Barney Ltd., told Izumiya on Wednesday that Mycal would rather look for a sponsor who could take over much larger Mycal operations, he said.

''We took this as a virtual turndown,'' Hayashi said.

Last month, Mycal filed for court protection from creditors with liabilities of 1,388.1 billion yen on an unconsolidated basis.

It will hold the first selection of what it calls sponsors for its rehabilitation plan Friday as a step toward concluding a sponsorship contract in early November.

Meanwhile on Thursday, Izumiya released its group earnings report for the fiscal first-half ended Aug. 31, posting a net loss of 1.4 billion yen against the net profit of 1.4 billion yen in the same period a year earlier.

Its group sales fell 6.2% from a year ago to 174 billion yen.
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Publication:Japan Weekly Monitor
Date:Oct 15, 2001
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