Seibu Department Stores Ltd. plans to post extraordinary losses of some 80 billion yen for its business year to Feb. 28 after liquidating a subsidiary and incurring capital losses, company sources said Wednesday.
The company has decided to dispose of its special losses in a lump sum.
The maneuver constitutes preparation for its planned integration in fiscal 2004 with Sogo Inc., a failed department store chain that is currently undergoing court-guided rehabilitation under the auspices of Seibu.
In the current business year, Seibu will report some extraordinary losses of some 50 billion yen from its liquidation of Seiyo Corp., a real estate unit that went bust in 2000.
This will end its Seiyo-related loss disposition.
Seibu will also post extraordinary losses of between 10 billion yen and 15 billion yen tied to capital losses incurred from the sale of its shareholdings on Yoshinoya D&C Co.
Yoshinoya operates a fast-food chain that serves "gyudon" beef and rice bowls.