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January 18, 2008 |
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SENBA KITCHO: Files for Court Protection Under Civil Rehab Law Senba Kitcho K.K. filed Wednesday for court protection from creditors amid suspension of its business in the wake of a food mislabeling scandal, Japan Times reports. According to the Times, Senba Kitcho said it sought to alleviate around JPY800 million in liabilities and rebuild operations under the Civil Rehabilitation Law. Pursuant to the business rehabilitation plan Senba Kitcho announced in a news conference in Osaka, the company's president, Masanori Yuki, stepped down as of Wednesday, while his wife, Sachiko, who was a board member, was named as the new president, the report says. The Yuki couple's two sons -- Kikuo, in charge of purchases at the main outlet, and Shoji, in charge of Kyushu -- also stepped down as board members, the Times adds. Meanwhile, the master chef of Senba Kitcho's main outlet will join the board. The report relates that the effective bankruptcy came about three months after revelations in October that the firm had engaged in false labeling of its beef and other products. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 16, 2008, Senba Kitcho suspended operations for nearly two months since the scandal last year that lead to the deterioration in its finances and forced it to cut costs by seeking voluntary retirement from its employees. Most of the companies liabilities are on account of employee wages and tenant charges for its outlets. The TCR-AP report stated that allegations against Senba Kitcho include acts of falsely labeling the ingredients of three processed beef products sold between March and October, using broiler chickens for products that listed an indigenous breed of chicken as ingredients on their labels, and faking expiration dates of noodle dipping sauce and those of expired dessert items sold at its delicatessen in the Iwataya department store. Osaka-based Sencho Kitcho K.K., is a restaurant chain operator with 12 branches all over Japan. |
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