Mail-Order House Senshukai Planning Massive Restructuring

October 25, 2018

Osaka- Major Japanese catalog shopping company Senshukai Co. will carry out massive restructuring due to its weak business performance, it was learned Wednesday.

The company is considering selling its head office in Osaka, western Japan, consolidating its business bases and soliciting employees for voluntary early retirement.

President Hiroyuki Hoshino is expected to step down to take responsibility for the poor business results.

The company is seen announcing its restructuring measures and the leadership change as early as this week.

"We are exploring various possibilities to improve our performance. But no concrete decision has been made," Senshukai said in a statement Wednesday. Senshukai, established in 1955, is known for its Belle Maison shopping catalogs targeted at women.

The company is lagging in e-commerce, while online retailers including Amazon.com Inc. are increasing their presence. It has lost many customers to its online rivals.

In 2017, Senshukai incurred a group net loss of 11 billion yen.

When the company solicited applicants of voluntary retirement in November last year, 134 employees applied, nearly three times the planned number.

In April this year, the company ended its capital and business alliance with department store operator J. Front Retailing Co. Senshukai forecasts a group net profit of 200 million yen for 2018, hoping to turn around its business mainly through cost reductions. Jiji Press