Kanebo Ltd., struggling under a state-backed rehabilitation program, will spin off its textile business and transfer it to a joint company to be established by Kanebo and dyeing and finishing company Seiren Co., the two companies said Wednesday.
Kanebo will concentrate its resources on building up its profitable daily commodity, pharmaceutical and food businesses, Kanebo President Akiyoshi Nakajima said, effectively announcing the end of the firm's 116-year involvement with textiles.
"We thought maintaining highly skilled human resources was the most important point" of the process of restructuring, Nakajima said. "I think we found how to accomplish it through talks with Seiren."