Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • November 2008 (Revised January 2009)
  • Case
  • HBS Case Collection

The Restructuring of Daiei

By: Richard S. Ruback
  • Format:Print
  • | Pages:11
ShareBar

Abstract

In 2004, the Industrial Revitalization Corporation of Japan (IRCJ) was given the task of restructuring Daiei, one of the largest Japanese retailers and the country's most prominent zombie companies. The IRCJ was a government-sponsored organization that was funded with 50 billion yen in equity capital and 10 trillion yen of government - guaranteed funds. Daiei presented the IRCJ with a unique opportunity to demonstrate the effectiveness of its restructuring strategy which would require a significant write-down of Daiei's bank debts, substantial store closures and workforce reductions, and sufficient new private equity capital to help reposition and revitalize Daiei's retail operations. Overcoming these hurdles in a large and visible company like Daiei would be an important accomplishment for the IRCJ. But, failure, too, would have far reaching consequences.

Keywords

Restructuring; Capital Structure; Private Equity; Performance Effectiveness; Retail Industry; Japan

Citation

Ruback, Richard S. "The Restructuring of Daiei." Harvard Business School Case 209-060, November 2008. (Revised January 2009.)
  • Find it at Harvard

About The Author

Richard S. Ruback

Finance
→More Publications

More from the Author

    • March 2025
    • Faculty Research

    Rose Electronics Distributing Company (B)

    By: Richard S. Ruback and Royce Yudkoff
    • March 2025
    • Faculty Research

    Next Street, LLC (B)

    By: Richard S. Ruback and Royce Yudkoff
    • March 2025
    • Faculty Research

    Nashton Partners and Its Search Fund Process (B)

    By: Richard S. Ruback and Royce Yudkoff
More from the Author
  • Rose Electronics Distributing Company (B) By: Richard S. Ruback and Royce Yudkoff
  • Next Street, LLC (B) By: Richard S. Ruback and Royce Yudkoff
  • Nashton Partners and Its Search Fund Process (B) By: Richard S. Ruback and Royce Yudkoff
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.