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December 11, 2007 |
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KOJIMA CO: Violates Recycling Law for the Second Time Kojima Co. has been ordered by The Environment Ministry and the Ministry of Economy, Trade and Industry to improve on its recycling law compliance for the second time, reports Kyodo News. According to the report, Kojima failed to transfer 76,745 used products to their manufacturers after collecting them from consumers nationwide. Kyodo News writes that the Home Appliance Recycling Law requires retailers to collect recycling fees from customers when receiving used air conditioners, television sets, washing machines and refrigerators, and send the used products back to their manufacturers. Kojima, states the report, claims that some of the collected products were stolen and that the company is currently investigating the whereabouts of the rest of the products. However, the two ministries believe that the latest misconduct was carried out on an extensive scale and has been carried out between April 2004 and September this year, relates Kyodo News. Kyodo notes that both ministries demanded the electric appliance retailer to report the cause of the misconduct and how it is dealing with the recycling charges collected from consumers in cases where the used products have not been passed on to their manufacturers. The total amount collected by Kojima is estimated to exceed JPY270 million and Kojima, according to Kyodo News, said it is refunding customers who are known to have paid recycling fees. Kojima President Akio Kojima is quoted as saying in a news conference, "We feel very sorry for causing trouble for our customers." Of the 76,745 home appliances Kojima did not pass on to the manufacturers, 54,537 were air conditioners, 17,769 TVs, 2,313 refrigerators and 2,126 washing machines, adds Kyodo News. The report recalls that Kojima was among the 10 stores in Aichi and Gifu prefectures reprimanded in October for a similar misconduct. About Kojima Co. Kojima Co., Ltd., -- http://www.kojima.net/ -- headquartered in Tochigi Prefecture, is a Japan-based retailer of home electric appliances. The Company sells computers and peripheral equipment, computer software, audiovisual (AV) equipment, information devises, health equipment, lighting, clocks, office equipment, games and others. The Company also offers its products through its own online retail stores. Through its subsidiaries, Kojima is also engaged in the operation of halls and the provision of restaurant services, as well as the travel, real estate leasing, life and non-life insurance agency and advertising businesses. 2-1-8 Hoshigaoka Utsunomiya-shi, TCG 320-8528 JPN +81-28-6210001 (Phone) * * * The Troubled Company Reporter-Asia Pacific reported on December 4, 2007, that Rating and Investment Information Inc. has downgraded the issuer rating of Kojima from 'BBB-' to 'BB+' with a stable outlook. According to R&I, the company has undertaken reforms for improving its competitiveness through consolidation and elimination of outlets and opening large stores. However, sales have not grown despite the expanded sales floor areas, and recovery of profit is lagging behind. |
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