Bankruptcy filing by international apparel brands continues and the latest to join this list is Japan’s well-known lifestyle brand Muji, whose US division has filed for Chapter 11.
As per reports, the brand has filed bankruptcy with more than 200 creditors and liabilities of US $ 50 million.
Closure of brand’s unprofitable stores is also being reported. Here it is important to note that just 4 months back, Muji had closed 18 stores in the US.
The company has said that though pandemic has been responsible for its low performance, it has been facing losses since last 3 years. Even last year, it reported a loss of around US $ 10 million.
Muji, which entered US market in 2006, cracks under the weight of pricey rent payments.
Satoshi Okazaki, CEO of the company, said “Muji has felt the devastating effects of the COVID-19 pandemic on in-store retail and as a result will take this opportunity to refocus our efforts in the US on key regional markets and e-commerce.”
The bankruptcy filing is expected to have little effect on operations in other regions, including Japan.