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


Ceconomy sells its Russian division

21/06/2018

Ceconomy, MediaMarkt's parent company, has sold its onerous Russian division to local electronics chain M.video. The German electronics giant does not quit Russia altogether however, as it continues as shareholder of M.video.

LVMH's Bernard Arnault invests in refurbished phones

14/06/2018

BackMarket, a French start-up that wants to be a marketplace for refurbished smart phones, tablets and laptops, has secured a 41 million euro investment. The most famous new investor is Bernard Arnault, CEO of luxury group LVMH.

Coolblue closes hundreds of web shops

11/06/2018

Dutch e-commerce group Coolblue has terminated hundreds of its web shops, instead preferring one central web shop at coolblue.be/nl. This may be the precursor to an international expansion, the company says.

Xiaomi's European conquest goes through Paris

23/05/2018

Chinese smartphone manufacturer Xiaomi just opened a physical store in Paris, part of its ambitious European expansion plan. The brand is also dreaming of an American launch.

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.