Kanebo Ltd. said Monday it has formed an investigative panel -- led by legal experts -- to probe alleged illegalities in the company's past accounting practices and business transactions.
Kanebo President Akiyoshi Nakajima said during a news conference that the move represents a response to "(public) criticism of the nontransparent nature" of the company's past management.
The panel is headed by lawyer Yuichi Suzuki, a former public prosecutor.
Another prosecutor-turned-lawyer, Yuki Kawachi, serves as a panel adviser.
The troubled cosmetics and textiles maker said it will publicize the panel's findings at a date that has yet to be decided.
It is rumored that Kanebo may have engaged in shady business deals or may have window-dressed the accounts of its money-losing textiles division.
The in-house investigation will examine these matters, with former top Kanebo executives possibly being held responsible, depending on the findings, company sources said.
The company has requested a bailout from the state-backed Industrial Revitalization Corp. of Japan. The company said in March it expects to post a negative net worth of 170 billion yen for fiscal 2003.