The Tokyo District Court has approved the start of liquidation of Bandai Music Entertainment Inc., a unit of major toy maker Bandai Co., a leading private credit-research agency said Monday.
Saddled with 7.3 billion yen in debts, Bandai Music applied to the court for special liquidation June 30, Teikoku Databank Ltd. said, adding that the application was approved July 28.
Bandai said liquidation charges for the deficit-ridden unit had already been posted in its earnings report for the business year that ended March 31, 2000, adding it will have no impact on its performance for the current year ending next March.
Bandai Music, involved in music and audiovisual businesses, reported some 100 billion yen in sales in the business year that ended February 1998.
However, its business had deteriorated recently due to a plunge in sales resulting from a lack of chart-topping artists and an increase in marketing expenses, Teikoku Databank said.