Kunio Takagi

Kunio Takagi said that he would step down Oct. 21 to take responsibility for the ailing retailer's decision to ask a state-backed bailout agency to help in its rehabilitation.

His announcement came as Daiei reported its group net profit tumbled 49 percent to ¥1.18 billion in the six months ended Aug. 31, down from ¥2.30 billion from the same period a year ago.

Takagi, who became president in 2001, tried to lead a turnaround at Daiei. The company has received massive bailouts before. Its main banks, UFJ, Mizuho and Sumitomo Mitsui Banking, gave a total of ¥520 billion in financial aid to Daiei in 2001 and 2002.

Takagi repeatedly rejected pleas from Daiei's creditors to seek a bailout but gave in Oct. 12 to their demands to turn to the Industrial Revitalization Corp. of Japan for help.

The Japan Times Weekly: Oct. 23, 2004
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