More than 90 percent of some 3,300 creditor banks and suppliers to the failed Sogo department-store chain approved a rehabilitation package Wednesday aimed at reconstructing the group.
The package, which was later approved by the Tokyo District Court, features plans to reduce the number of Sogo Co. outlets from 22 to 13 and to rebuild the surviving 13.
Sogo must now focus its rebuilding efforts on maintaining its customer base.
Sogo went effectively bankrupt in July with 1.870 trillion yen in liabilities and filed for court protection from creditors under the Corporate Rehabilitation Law, which sets the repayment period at 10 years.
According to the rehabilitation package, the 13 surviving outlets will merge and the 10.000 Sogo group employees will be reduced by 4,000.
Nine stores that have given up on rehabilitation efforts are talking with local municipalities and companies in a search for possible buyers.
Wednesday's meeting included creditors and operators of the 13 surviving Sogo outlets.
Sogo special adviser Shigeaki Wada, who oversaw the rebuilding of Seibu Department Stores Ltd., will become the new president of Sogo and will be tasked with modernizing its management.