PARCO Subsidiary to Transfer Shares
May 10, 2021
PARCO Co., Ltd. (“PARCO”) hereby announces the conclusion of a share transfer agreement with Libra Invesco Co., Ltd. (“Libra Invesco”) for the transfer of all shares of NEUVE A CO., LTD. (“NEUVE A”), a 100% subsidiary of PARCO, to Libra Invesco planned for June 30.
NEUVE A was established in 2001 as an associate of PARCO. As a company with specialty general merchandise shops at its core that continues to offer new value proposals and contribute to enhancing customers’ lifestyles, NEUVE A has opened and operated specialty shops throughout Japan in PARCO shops as well as in shopping centers, etc.
However, due to changes in the environment in which NEUVE A operates, intensifying competition and other factors, the business environment has become challenging. Although in recent years NEUVE A has worked to improve profitability by opening shops in new formats and strengthening EC while at the same time closing unprofitable shops, given the sudden changes in the management environment, such as the impact of temporary shop closures due to the novel coronavirus (COVID-19) pandemic in the previous fiscal year, business results have been sluggish.
Given the above points, although NEUVE A is currently patronized by many customers, it has been determined that the best option for NEUVE A to grow in the future is for it to collaborate with and operate under the corporate umbrella of another company with broad-ranging business expertise, such as in specialty shops, and by enhancing the individuality and editing capabilities held by NEUVE A, build a stable business foundation.
Based on this, of the transfer counterparty candidates that were considered for NEUVE A, an agreement has been reached with Libra Invesco on the terms and conditions of the transfer and it has been decided that all shares of NEUVE A will be transferred to Libra Invesco.
For details, please refer to the document “Notice Regarding Transfer of Share Resulting in Changes in Consolidated Subsidiary” disclosed by J. FRONT RETAILING Co., Ltd. the parent company of PARCO.
https://www.j-front-retailing.com/english/news/news_1.php (External link)