Japanese retailer Muji has confirmed its intention to appoint administrators after media reports began speculating the possibility of a pre-pack administration deal for its European holding company.
In a statement to FashionUnited, the company said: “Muji Europe Holdings (MEH), has announced its intention to appoint administrators. This is part of a planned strategic restructuring of the business and Muji’s management expect to conclude a deal shortly.
“For Muji’s colleagues and customers in Europe it is business as usual – all stores and e-commerce will continue to operate as before, and all new and outstanding orders will be fulfilled.”
The filing will allow MEH 10 days to present its next steps.
Evidence of trouble brewing could already be seen in the delay of the company’s accounts, which are seven months overdue. When last outlined, MEH reported a 15 million pounds loss for the year to August 2021, according to a filing with UK’s Companies House.
Muji currently operates 55 directly managed stores across Europe and Americas. For the full FY24, in the two regions, Muji’s parent company Ryohin Keikaku Co. said it was anticipating operating revenue of 365 million yen, up from the prior year’s 354 million yen.
