Toshiba seeks money to pay for restructuring plan | RetailDetail

Toshiba seeks money to pay for restructuring plan

Toshiba seeks money to pay for restructuring plan

Toshiba seeks another 300 billion yen (2.272 billion euro) credit line to pay for its social plan.

Accounting scandal leads to restructuring

The revelation of its accounting mishap, with embellished profits since 2009, has put Toshiba with its back against the wall. The scale of the fraud reached 1.2 billion euro, three times higher than anticipated at first, which means that the Japanese electronics group (with copying machines, laptops, hard disks, televisions and medical systems) has to sell divisions and let staff go.

 

Its computer and household electric appliances divisions have been put up for sale, while 6,800 people will lose their jobs and more than 10,000 in total when the entire restructuring plan goes through.

 

Such a restructuring plan also costs money, money Toshiba hopes to get through an additional 300 billion yen loan. Sumitomo Mitsui Banking Corp, Sumitomi Mitsui Trust Bank and Mizoho Bank already gave a 400 billion yen (3.029 billion euro) loan in September, but with the additional 300 billion yen loan, the total loan amount will reach more than 1,000 billion yen (7.573 billion euro).

 

Credit rating takes a blow

Last week, Toshiba said it will end its fiscal year with a 550 billion yen (4.165 billion euro) record loss and its decent credit rating will also take a blow now. Moody's places Toshiba only two steps above the so-called junk bonds.

Questions or comments? Please feel free to contact the editors


Fnac Darty and MediaMarkt Saturn enter purchase alliance

16/05/2018

French electronics retailer Fnac Darty has set up a purchase alliance with competitor MediaMarkt Saturn. Both companies will buy together when it comes to the European retail market.

Amazon looking to outbid Walmart in Flipkart deal

03/05/2018

The battle for dominance on the Indian e-commerce market seems to be stepping up a notch: Amazon may be looking to buy a majority stake in Flipkart, trying to better Walmart which already started negociations with the Indian online retailer.

Amazon is working on domestic robot

24/04/2018

Amazon is secretly working on robots for consumers. According to press agency Bloomberg, the tech giant wants to trial the robots at their employees’ homes and wants to present its domestic robots in 2019.

Fnac Darty continues growth thanks to collaborations

23/04/2018

Electronics group Fnac Darty has achieved a small turnover growth in the first quarter of 2018. The group also says it took major steps in its recovery plan: before the end of 2018, it seeks 130 million euro in synergies.

‘Schnäppcam’ lures customers back to the store

16/04/2018

It seems a lost fight to compete with web shops, but not every retailer is simply throwing in the towel. A German household appliance seller has found an original way to entice customers.

Media Saturn launches first checkout-free store in Austria

12/03/2018

Saturn has opened Europe’s first checkout-free electronics store in Austria. The former Metro Group chain offers its customers traditional sales assistance, but payments have to happen using an app.