https://headlines.yahoo.co.jp/hl?a=20170510-00010001-teikokudb-ind
translated and edited by Brett Larner
Headquartered in Shibuya, Tokyo, retailer Art Sports Co., Ltd. filed for bankruptcy in the Tokyo District Court on May 9, receiving a decision later the same day to commence bankruptcy proceedings. Attorney Michio Suzuki of the Hashimoto Sogo firm represented the company in the application, with attorney Akihisa Kagawa of the Kagawa firm acting as bankruptcy trustee.
Art Sports was founded in April, 1967, celebrating its 69th anniversary as a premier sporting goods retailer last month, operating eight stores in the Tokyo area as well as an online shopping portal. Primarily handling running gear and tennis goods, it expanded its operations to also deal with equipment for sports cycling, mountaineering and other outdoor activities in its separate "Art Sports," "OD Box" and "Annex" outlets. For the fiscal year ending February, 1991 it posted annual sales of about 5,741,000,000 yen [~$50.5 million USD at current exchange rates].
However, in the years following that sales declined due to a combination of sluggish consumption and closing of unprofitable stores. For the fiscal year ending Feburary, 2016 Art Sports' sales had fallen to roughly 2,400,000,000 yen [~$21 million USD]. During that time the company sought to cut expenses by reducing personnel and relocating its head office, but in recent years it continued to experience unsustainable cash flow problems, and with increasing concern among its business partners it ultimately landed in its current position.
Art Sports' liability to its approximately 420 creditors at the time of its application for bankruptcy is estimated at 1,550,000,000 yen [~$15.5 million USD]. Business operations are reported to be in transfer to another company.
Translator's note: Art Sports, especially its main Shibuya location, is a longtime fixture for Tokyo runners. I bought my last pair of shoes there. Its inability to survive in the midst of a thriving amateur running boom is food for thought. It will be missed.
translated and edited by Brett Larner
Headquartered in Shibuya, Tokyo, retailer Art Sports Co., Ltd. filed for bankruptcy in the Tokyo District Court on May 9, receiving a decision later the same day to commence bankruptcy proceedings. Attorney Michio Suzuki of the Hashimoto Sogo firm represented the company in the application, with attorney Akihisa Kagawa of the Kagawa firm acting as bankruptcy trustee.
Art Sports was founded in April, 1967, celebrating its 69th anniversary as a premier sporting goods retailer last month, operating eight stores in the Tokyo area as well as an online shopping portal. Primarily handling running gear and tennis goods, it expanded its operations to also deal with equipment for sports cycling, mountaineering and other outdoor activities in its separate "Art Sports," "OD Box" and "Annex" outlets. For the fiscal year ending February, 1991 it posted annual sales of about 5,741,000,000 yen [~$50.5 million USD at current exchange rates].
However, in the years following that sales declined due to a combination of sluggish consumption and closing of unprofitable stores. For the fiscal year ending Feburary, 2016 Art Sports' sales had fallen to roughly 2,400,000,000 yen [~$21 million USD]. During that time the company sought to cut expenses by reducing personnel and relocating its head office, but in recent years it continued to experience unsustainable cash flow problems, and with increasing concern among its business partners it ultimately landed in its current position.
Art Sports' liability to its approximately 420 creditors at the time of its application for bankruptcy is estimated at 1,550,000,000 yen [~$15.5 million USD]. Business operations are reported to be in transfer to another company.
Translator's note: Art Sports, especially its main Shibuya location, is a longtime fixture for Tokyo runners. I bought my last pair of shoes there. Its inability to survive in the midst of a thriving amateur running boom is food for thought. It will be missed.
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