M&A Advisory

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 TypeF

  • 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.

Managerial Challenges

  • 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
(Market Research, General Consultation)

  • 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.