Japanese electronics retail chain Laox has reportedly planned to close half of its stores due to the coronavirus pandemic.
The retailer will close 12 of the 24 stores it operates, Reuters reported citing the company.
The move is part of its strategy to reduce costs and stabilise liquidity. It will close three stores in Hokkaido, six in Kyushu and one each in Tokyo, the Kinki western region and Okinawa, the Japan Times reported.
Information regarding the closure dates will be announced when they are finalised.
In addition to this, the retailer has revealed plans to exit from Okinawa Prefecture and Kyushu.
The company has blamed the decline in customers visits from China due to Covid-19 as the reason for shut down of stores.
Laox recorded a net loss for the second consecutive year in the year ended in December 2019.
Last month, the company announced the “Notice of Calling for Voluntary Retirement” as part of restructuring efforts.
The call was made between 17 February and 6 March.
The company will record the special severance payments and costs associated with the retirement as an extraordinary loss in the consolidated accounts in the fiscal year ending 31 December.
Earlier this month, the US business of Japanese minimalist lifestyle brand Muji reportedly sought bankruptcy protection due to the impact of coronavirus pandemic.