Japanese furniture retailer Otsuka Kagu has posted a net loss for the fifth year in a row. The company will become a wholly owned subsidiary of major home appliance chain operator Yamada Holdings as it struggles to revive its business.
Otsuka Kagu said on Wednesday its net loss of 2.3 billion yen, or about 21 million dollars, for the year through April, was mainly due to personnel costs and rent.
The company's brand image was dealt a blow after infighting between its founder and his daughter over the company's management.
Yamada bailed out the struggling company by acquiring a majority stake in 2019.
Otsuka Kagu and Yamada Denki deepened their integration by selling each other's furniture and electric appliances.
But that wasn't enough to turn Otsuka Kagu's performance around. The founder's daughter Otsuka Kumiko stepped down as president in December last year to make way for the head of the parent company.
Wednesday's decision that Otsuka Kagu will become a wholly owned subsidiary of Yamada Holdings means the company will be delisted from the Tokyo Stock Exchange's JASDAQ market in August.