Teisei Department Store Group Rescue Meeting

Chapter 54

The rescue plan for Teisei Department Store was held in the meeting room of Keika-in Bank’s head office, but I only participated as a figurehead.

Since it was a gathering of executive officers and directors, there were inevitably people who doubted, thinking, "Isn't this more meddling for a figurehead?"

So, I chose to watch the meeting on a TV monitor instead of participating directly.

Executive Officer Tachibana was on my side and therefore absent from the meeting.

An earphone connected to the microphone placed in front of me was worn by Ichijou, who was newly promoted to director.

"Now, let me explain the reconstruction plan for the Teisei Department Store Group."

The Teisei Department Store Group consisted of department stores, supermarkets, and convenience stores, along with hotels, fashion buildings, and beef bowl restaurants chain .

Although the bad debts were turned over to the Resolution and Collection Corporation, the main issue remains, which was the group's earning power.

Since they couldn't be rebuilt by sending some people in, the first proposal was a split sale.

"As for the hotels, Keika-in Hotel wants to purchase them. Several companies have shown interest in buying the convenience stores. There are also companies eyeing the supermarkets. However, the only company interested in the department stores is Teisei Railroad."

I knew that convenience stores would become the mainstay of logistics in the future, and supermarkets and department stores would become unprofitable industries.

The slow movement of the Teisei Railroad Group was partly because they were focusing all their efforts on the Nagano Olympics in addition to handling bad debts.

Given that the hotels would be taken over, the option of split sale for the rest wasn't a bad choice.

I muttered, and Ichijou raised his voice.

"Wait a moment. We can obtain fresh products from Hokkaido through our connection with Hokkaido Development Bank. Simply distributing those within the group would set us apart from other companies."

By holding supermarkets, department stores, and convenience stores, fresh products from Hokkaido could be provided to customers in urban areas. This would not only rescue Hokkaido's economy but also save the former Hokkaido Development Bank, which held many debts.

"That opinion is worth considering, but the problem is whether we can do it. Teisei Department Store Group is known for 'management by intuition,' and the internal figures are still suspicious. While I agree we managed their bad debts, we can't rule out the possibility that these stores are running at a loss."

A good example of this is the Sachi-i supermarket group, which is in a state of internal strife. Due to a failed financial strategy and internal power struggles, their financial affairs are shrouded in mystery, making it a supermarket I couldn't handle either.

"I understand. That's why the reconstruction of Teisei Department Store Group requires supervision by a company capable of comprehensive management."

Ichijou asserted and introduced a new project. The secretary, who had been waiting, handed out the materials to the executives.

"Let's entrust the reconstruction plan of the Teisei Department Store Group to a general trading company."

One of the companies affected by the Asian financial crisis was general trading companies. During this period, the collapse of logistics due to the Asian financial crisis directly hit these companies, turning their cross-shareholdings into bad debts.

While major trading companies with latent profits managed, lower-tier general trading companies faced management crises.

"Let's rescue Matsuno Trading and have them manage the Teisei Department Store Group for us."

General trading companies boast a network that provides everything from ramen to missiles. We have Hokkaido enterprises as producers, Keika-in Bank capable of handling finances, and the Teisei Department Store Group directly connected to customers.

The network acting as the veins and nerves connecting these was the general trading company.

"Indeed, Moonlight Fund has been the main force behind rescuing Matsuno Trading, but isn't it trying to pass the burden now that it can't be handled?"

One of the executives raised a dismissive voice towards Ichijou, but Ichijou didn't mind.

That's because Moonlight Fund had been yielding enough returns to disregard such opinions.

"I don't deny that view. However, wouldn't these rescue projects have been unnecessary if DK Bank had been functioning?"

With Ichijou’s words, half of the executives—those who had parachuted from the Ministry of Finance—fell silent.

Due to scandals in the Ministry of Finance and the general meeting of DK Bank, companies with DK Bank as their main bank were struggling to secure funds and desperately turned to financial institutions.

Unlike other financial institutions, Keika-in Bank actively began to rescue promising companies.

"Anyway, the rescues related to DK Bank are under the jurisdiction of the Ministry of Finance. You all are aware of that."

In this type of work, groundwork determines about eighty percent of the outcome.

Former Finance Minister Izumikawa Tatsunosuke had already promised cooperation, and Chief Budget Examiner Gotou had requested cooperation from the practically brain-dead Ministry of Finance. Hence, Keika-in Bank, a colony of the Ministry of Finance, could not refuse.

"However, whether Matsuno Trading alone can supervise Teisei Department Store , it still is..."

To the still resisting executive, I allowed Ichijou to reveal the trump card.

The bad Debt of DK Bank had driven such companies to the brink of collapse. For the sake of the resource business, let's not hesitate to devour them.

"I see. In that case, let's merge Matsuno Trading. With Akamatsu Trading."

The resulting Akamatsu Trading from this merger would support Moonlight Fund’s resource business and rake in enormous wealth during the resource bubble following the IT bubble collapse.

Thanks to the network of these general trading companies, Teisei Department Store Group, which could now stably provide fresh food from Hokkaido, would be revitalized.

Thus, Keika-in Group would rise to the forefront of the reorganization of the Japanese economy, but the mountain of bad debts Japan held remained towering.

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Glossary 

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【Sachi-i】

The bankruptcy of this company is covered in the failed companies series on Nico Nico Douga.

http://www.nicovideo.jp/watch/sm31453369

【Akamatsu Trading】

There was a time when its bankruptcy was rumored. Knowing the subsequent rise in resource prices makes it seem very tasty.

By the way, the name is slightly modified from the original, but thanks to "Osomatsu-san," I sometimes laugh alone imagining this general trading company F6.