Cabinet ministers reacted favorably Tuesday to a Daiei Inc. decision to turn itself around without the help of a state-backed corporate rehabilitation body.

Economy, Trade and Industry Minister Shoichi Nakagawa said he supports the private sector-led rehabilitation plans endorsed by the Daiei board.

"It's good if (Daiei) made such a decision," Nakagawa told a news conference.

The struggling retail operator decided Monday to rehabilitate itself without the help of the Industrial Revitalization Corp. of Japan.

It will make a final decision on rehabilitation after studying the results of next Monday's bidding to select companies to assist it.

Chief Cabinet Secretary Hiroyuki Hosoda threw his support behind Daiei's decision, saying, "We must wait and see the Oct. 18 bidding."

According to Hosoda, Prime Minister Junichiro Koizumi on Monday told Cabinet members to work together to help work out the best method for Daiei's rehabilitation in view of the possible impact on firms with business ties, creditors, client firms, small companies and regional economies.

Some ministers had little to say about the Daiei plan.

Financial Services Minister Tatsuya Ito and Finance Minister Sadakazu Tanigaki said Daiei and its three main creditor banks should discuss ways to rebuild the retailer, refusing to comment on specific developments.