Trendy Japanese retailer Muji’s US business filed for bankruptcy Friday, making it the latest corporate casualty of the coronavirus crisis.
The minimalist home-goods chain plans to close some unprofitable stores and renegotiate rents in the US after the pandemic forced its 18 American locations to shut down in March, according to its Tokyo-based parent company, Ryohin Keikaku.
Muji USA started the Chapter 11 restructuring despite announcing plans in May to reopen a handful of stores, where it sells simply designed dishes, beauty products and other items. The business has liabilities of $50 to $100 million, according to its bankruptcy filing.
Muji is the latest chain to fall victim to the COVID-19 crisis that has pushed several major retailers into bankruptcy in recent months, including J.Crew, JCPenney, Neiman Marcus and Brooks Brothers.
Ryohin Keikaku said the US bankruptcy won’t affect its business in other markets. It has 975 stores around the world under the Muji and IDÉE banners, including more than 400 in its home base of Japan.
The company has nevertheless suffered as the pandemic shut retail stores worldwide and shut consumers in their homes to stop the virus from spreading. Ryohin Keikaku reported a net loss of about 4.1 billion yen ($38.5 million) for the quarter that ended May 31, compared with a net profit of roughly 6.6 billion yen ($61.7 million) in the year-earlier quarter.
With Post wires
