Skylark to close 200 restaurants

Tuesday 30th September, 04:24 AM JST

TOKYO —

Skylark Co plans to close about 200 unprofitable restaurants and shed some 500 jobs as part of a turnaround program, sources familiar with the matter said Monday. Skylark last Wednesday presented the turnaround plan that covers the three years through December 2011 to a group of creditor banks, including Mizuho Bank, a unit of Mizuho Financial Group Inc, the sources said.

Skylark will focus on small, low-price restaurants near railway stations and within shopping malls. Skylark plans to raise tens of billions of yen by selling shares and assets in an effort to reduce debt totaling about 200 billion yen as of December 2007.

JCN

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8 Comments

fnamukangula at 05:06 AM JST - 30th September

is the japanese economy being affected by the recent economic downfall in the USA?

Frank www.welcometoinsurance.com
NuckinFutz at 07:47 AM JST - 30th September

The Japanese economy is very sensitive to anything so the downfall in the USA is having an effect to a certain degree. The biggest problem with Japanese businesses, especially restaurant chains is their total failure to grasp the concept of LOCATION IS EVERYTHING! They build outlets in the middle of nowhere and wonder why they go bankrupt in a year or less.
barfly08 at 01:26 PM JST - 30th September

"The Japanese economy is very sensitive to anything so the downfall in the USA is having an effect to a certain degree."

Yes ! And Japan has been warned for years to not put all its eggs into one basket. They should have diversified and, like so many other countries, stop counting on the American public to run their economies. Funny how nobody stops to consider how the trade imbalance the US has with every country hasnt effected the job markets in the states. When American companies move overseas or when businesses in the US buy foreign parts, it puts more Americans out of work. All that subprime nonsense is a indirect result of thousands of blue collar workers losing their jobs. Fact is you cannot get a bank loan without a job. The banks check your background very carefully. However, once you get your loan, and you lose your job, well there you go ! I see the same thing happening here in Japan. All these companys closing will send millions to the poor house ! Japan is in deep trouble and the worst is yet to come. The US will survive through mergers and acquasitions. Japan won't !
muchogrande at 03:13 PM JST - 30th September

I think the real issue is that Skylark's food is lousy.
thundercat at 04:20 PM JST - 30th September

just close them all. i can think of a few more terrible 'family' restaurants that should be downsized into oblivion.
chouwa at 12:36 AM JST - 1st October

baafly's getting himself in a twit:

The US will survive through mergers and acquasitions.

What the hell are "acquasitions"? And no, the U.S. will not survive. It is crumbling. The whole infrastructure is crumbling. Investors have lost faith in corporate banking in America. On TV, they showed reporters trying to ask stock brokers on Wall Street questions, but they all looked in a huff and puff about it all. Greed and corruption has brought the downfall of Wall Street and here is the predicament: Americans realize that a bailout is needed, but are sure as hell not going to pay for it. 700 billion dollars from taxpayer's money? Ha! Yeah, right. America will be pushed further and further into debt. The illegal Iraq war has already cost Americans tons and tons of their money. Not to mention that the recent spate of hurricanes has caused many states to issue long lines at the gas pump with signs of "No gas" attached to it. Frankly speaking, it's going to take a long time for banks in the U.S. to gain the trust of the public back. Banks as well are not going to feel like lending out loads of money after the subprime loan crisis, which is still affecting many people who continue to lose their homes.
barfly08 at 04:57 PM JST - 3rd October

"And no, the U.S. will not survive. It is crumbling."

Suuure it is ! Wishful thinking on your part perhaps ? Might I suggest you stop worrying about the demise of the USA and learn to take advantage of these "once in a lifetime" opportunities. I for one made two simple investments and turned 20k into 400k in less than 3 years. Just look at ol Warren Buffet ! Snatching up GE stock like there was no tomorrow. There are winners and there are losers in the world chouwa, lemme guess which one you are ? Ha-ha !
helloklitty at 04:14 AM JST - 5th October

s the japanese economy being affected by the recent economic downfall in the USA?

It will be if all the money they've loaned the U.S. does not get repaid. The bailout package, now $800 billion (should have taken it at $700 B. - actually should not have taken it at all), will ease the pain a bit for the Asians, but IT'S NOT NEARLY ENOUGH.