Domestic and International Support Projects
Revitalised a company after bankruptcy through EBO
- Saved the only company left that can manufacture traditional style milled cotton.
- Brought in a local bank and chamber of commerce for revitalisation and long term support.
- Saved the local heritage and textile community!
Company Type (F)
- Type of Business: Textile dyeing and processing
- Business Scale: 50 million JPY
- Business Area: Kanto Region
- Number of Employees: 12
Status of Business
- Textile production has shifted to developing countries and sales has been falling.
- Filed for bankruptcy after the major earthquake in 2011 due to halt in operation.
- The production of "Chichibu Chijimi", a local cotton milled textile, was about to perish.
- Difficulty in finding sponsors after filing bankruptcy.
- Needed a business plan that can convince the court for continuation.
- Risk of losing customers become higher as time passes.
- Urgent planning and persuasion to creditors was a must for restarting their business.
Contents of Support (Setting a new entity and negotiation to stakeholders)
- Planned the funding and operation scheme together with the local Chamber of Commerce.
- Set up a new business entity and negotiated with former employees and clients
- Gathered necessary funds to buy machineries from the bankruptcy trustee
- Negotiation with bankruptcy trustee for suspension of purchase and rights of exclusion
- Created a business plan and received loans from local bank and Development Bank of Japan
- Negotiation with suppliers and customers to restart the business
Optius's Plus One! Mission: Save the local industry together with Chamber of Commerce and local bank
- Saved the local heritage "Chichibu Chijimi" by executing an Employee Buy Out (EBO) scheme.