TOKYO —

Major wig maker Aderans Holdings Co has announced a new medium-term business program in an apparent bid to fend off pressure from U.S. investment fund Steel Partners Japan Strategic Fund (Offshore) LP.

In the program covering the three years to February 2011, Aderans said that it aims to achieve 11.1 billion yen in group operating profit in the final year, nearly triple the 4,066 million yen reported for the year that ended in February this year. Its sales target has been set at 90 billion yen, up from 74,998 million yen.

The company intends to attain the targets by beefing up its wig and hair transplanting businesses in the domestic market.

Aderans also plans to increase the number of outside board directors from the current two in order to improve business transparency, the firm said.

In February, Steel Partners, the top Aderans shareholder with a 26% stake, called on the company to revamp its management through the resignation of President Takayoshi Okamoto and other executives. The fund also called on the company to look for a business integration partner.

Aderans has decided to reject the proposals.

A public relations official at Aderans said that implementing the new three-year business program will help raise the company’s corporate value, signaling the firm’s hope to win Steel Partners’ approval of the program.

JCN

9 Comments

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  UnagiDon at 10:37 AM JST - 21st April

  Evil Strel Partners empire -

  No! Aderans is peaceful, we have no weapons. You can't possibly...

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  Himajin at 10:52 AM JST - 21st April

  Their whole pricing system and sales system is fishy. They don't declare prices up front 'because every wig is custom made', but watching their dealings with my mother-in-law has not improved my opinion of this company.

  We're in Kobe, and Aderans goes all over Hyogo-ken making home visits selling wigs. They come several times until the deal is clinched. Once they have their contract, the client is required to travel from wherever they are to the shop in Sannomiya for 'required' checks. They phone aggressively to book the appointments...the elderly get quite convinced that they need to attend all these appointments. It is a great hardship for those who don't have someone to drive them. The appointments consist of washing the wig, and then suggestions for 'adjustments' which can include a perm for it, cutting it to look better...and the sales pitches for expensive shampoos etc for wig care. Adding more hair to the wig is also an option, a costly one.

  As for pricing, MIL was told her wig would be 500,000 'usually' and that her special price as a first-time buyer would be 300,000. A little under two years after purchase they started to push her to buy another wig, because of 'new technology' which would make the new wig lighter, and they basically talk down the wig the customer already has.'It's from a couple of years ago it's an old style, the backing is heavy' etc. Well she bit for it, ordered a new wig. They let you 'trade in' the old wig, 'We'll give you 300,000 for your old wig, your new one will cost only 300,000! isn't that wonderful!' eh? More expensive than the first one....

  I just see it as taking advantage of gullible, proud elderly women.

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  Altria at 11:22 AM JST - 21st April

  Looks like the situation could get a bit hairy...

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  WhatJapanThinks at 11:30 AM JST - 21st April

  Altria, a bald move to be sure, but Steel Partners have the kappa-bilities to pull this off; they just need to slap heads together.

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  Himajin at 11:43 AM JST - 21st April

  Hahaha, 'kappa-bilities'!!

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  Scrote at 04:28 PM JST - 21st April

  Steel partners have given up on the sauce and are now targeting syrups.

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  WhatJapanThinks at 04:42 PM JST - 21st April

  Scrote - hehehe! I was trying to work out how to get syrup into my comment, so well done!

  Himajin: wifey always describes male-pattern baldness as kappa-joutai.

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  Himajin at 07:28 PM JST - 21st April

  That's funny!

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  presto345 at 11:19 PM JST - 24th April

  The sales practices of Aderans described by Himajin bear no relation to Steel Partners' intentions. Aderans will come with a proposal and you can choose to accept or refuse. Likewise Aderans can accept or refuse the amorous intentions of Steel P whose intentions are only to take control of the company, make a quick killing and dump. Warren Liechtenstein is a typical corporate vulture who has no history of building companies that invent and develop technology and serve the people, but prey on the former to enrich himself and his cronies. A strong guard against Steel P@rtners is in order.

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