Amid mounting public criticism, ailing department chain operator Sogo Co. and its group companies have filed for court-mandated rehabilitation with the Tokyo District Court, top officials of the firm announced Wednesday evening.
The move means Sogo has given up on a controversial bailout plan that would have had the state spend public funds to keep a private firm afloat. The Sogo group has a total debt load of 1.87 trillion yen, according to the firm.
Sogo is the first major Japanese department chain operator with nationwide operations to go into bankruptcy since World War II.