Japanese retailer Seiyu, an affiliate of US retail giant Wal-Mart, has said it now expects a net loss of ¥83bn (US$704m) for the 2002/03 financial year to February, compared with the ¥21bn loss it forecast in October.
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The company said the revised forecast was due to extraordinary losses on a department store investment. Seiyu said it booked a one-time loss of ¥35.49bn from its investment in Seibu Department Stores.
Wal-Mart has a 33.4% stake in Seiyu. The Japanese retailer said it could not have gone ahead with restructuring plans without the financial backing of Wal-Mart.
“Wal-Mart is fully and actively supporting Seiyu in its efforts going forward to improve its operational and financial situation,” a Wal-Mart spokeswoman was quoted by Reuters as saying.
“As we have maintained throughout our involvement with Seiyu, changes will be gradual – not immediate or dramatic,” she said.
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