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Plummeting sales sends Shinohara into bankruptcy protection

Friday, 14 January 2011
By Print 21 Online Article

Major Japanese press manufacturer admits $94 million debt while seeking protection under the Japanese Civil Rehabilitation Law.

The family-owned company vows to restructure its operations while promising business as usual during the reorganization. According to a statement by Mikio Shinohara, president, the company continues to manufacture and sell its products as usual. He pledges that Shinohara will ‘do our utmost to achieve a corporate revival.’

The company is a victim of the offset press downturn, which saw its sales drop from $60 million (5 billion Yen) in March 2009 to $26 million (2.2 billion Yen) in March 2010. A failure to sell the company’s former iconic downtown headquarters as well as an increase in debt caused a salary payment delay and prompted bankruptcy protection.
The Japanese Civil Rehabilitation Act is similar to Chapter 11 in the USA. It allows companies to restructure themselves with protection from their creditors.

According to Bernie Robinson, managing director Currie Group, it is business as usual for Shinohara users in the region. The long-term agent for the brand is in contact with the Japanese management and keeping a close watch on the restructuring process. He is confident Shinohara will emerge in good shape from its current problems.

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