TOKYO —

Two major shareholders of Japanese restaurant chain operator Skylark Co are urging its president, Kiwamu Yokokawa, to step down to take responsibility for the company’s sluggish business performance, informed sources said Wednesday.

The two shareholders, Nomura Principal Finance Co, affiliated with leading Japanese brokerage group Nomura Holdings Inc, and European investment fund CVC Capital Partners, are increasingly frustrated at Skylark’s tardy earnings recovery after the company went private through a management buyout scheme in 2006 with the support from the two investment firms, according to the sources.

The investment firms and Yokokawa, a member of Skylark’s founding family, are also at odds over the timing of the company’s envisioned stock market comeback, the sources said.

To make matters worse, surging gasoline prices, which have discouraged consumers from dining out, are casting a pall over Skylark’s operations.

At the end of 2007, the two investment firms’ combined equity stake in Skylark stood at about 97%.

Nomura Principal Finance and CVC Capital Partners explained the proposed top management reshuffle to 19 banks, including Mizuho Bank, the sources said. Consent from the banks is necessary to oust the president, according to the sources.

Meanwhile, Yokokawa is believed to have told the banks that he intends to stay on, stressing that Skylark’s earnings will improve since its ongoing restructuring measures are set to pay off, according to the sources.

The banks are expected to shortly decide their response to the investment firms’ call for replacing the president, the sources said.

JCN

1 Comments

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  Altria at 11:20 AM JST - 31st July

  Sounds like the Gusto has gone out of their sails!

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