Sogo Co., Ltd.
Sogo Co., Ltd. is a department store chain that operates an extensive
network of branches inJapan
. It once owned stores in locations as diverse as Beijing, Hong Kong, Singapore, London, Taipei, Kuala Lumpur, and Bangkok, but most of these international branches are now operated by
independent franchises.
History
Sogo Hachioji Department Store, Hachioji, TokyoSogo was founded in 1830 in
Osaka by Ihei Sogo as a retailer of used kimono. In
July 2000, the company faced financial troubles cause by the reckless
real estate investment policy of the former Chairman, Hiroo Mizushima,
and the collapse of Japanese real estate prices since the mid 1980s.
The group collapsed under a debt mountain of US$100 million, owed
principally to Industrial Bank of Japan.
Sogo applied to Osaka District Court under the Civil
Rehabilitation Law on July 12, 2000. It has had to divest itself of
unprofitable business lines, as well as valuable assets such as
several stores in Japan(eg. Kokura and Kurosaki) and some overseas stores, including stores
in Singapore and Hong Kong.
Other overseas Sogo stores survived under independent franchises, through
which the Japanese company has also managed to raise capital.In
Japan, Sogo is now a subsidiary of Millennium Retailing.
