~ Develop AV equipment under the brand “FUNAI”~
On October 24, Funai Electric Co., Ltd (Daito City, Osaka Prefecture), an AV equipment manufacturer, received a decision to begin bankruptcy from the Tokyo District Court. Attorney Eiji Katayama (Abe, Ikubo, Katayama Law Office, 1-9-2 Marunouchi, Chiyoda-ku, Tokyo) was appointed as bankruptcy trustee.
The total debt (as of the fiscal year ending March 2024) is 46,159 million yen. It is the fourth largest home appliance manufacturer (information and communication equipment manufacturing industry) since the Heisei era.
AV equipment manufacturer providing affordable LCD TVs under the “FUNAI” brand. In 1951, Mr. Tetsuro Funai founded Shokai Sewing Machine as a wholesaler of sewing machine parts and finished products. In addition, Tonan Shoji Co., Ltd (Daito City) was established in January of the same year. In 1959, Funai Sewing Machine Company began producing transistor radios. In 1976, Tonan Shoji took over the company that originated from Funai Sewing Machine Shokai and changed its name to Funai Electric Co., Ltd. In the 1980s, the company entered the manufacturing of video-related products and home appliances, and expanded its business in the 1990s by doing business with Walmart Inc. In March 2000, the company was listed on the (then) First Section of the Tokyo Stock Exchange.
The company has a very high market share in North America, earning the nickname “FUNAI of the World”, with unconsolidated sales of 353,592 million yen in the fiscal year ending March 2005. However, after business performance declined due to intense competition with manufacturers from China, Taiwan, and other countries. In response, in 2016 we entered into a business alliance with Yamada Denki Co., Ltd (currently Yamada Holding Co., Ltd., Takasaki City, Gunma Prefecture), a large consumer electronics retailer, with the focus on exclusive supply. After that, the direct supplier Yamada Denki Co., Ltd (Takasaki City, Gunma Prefecture) came, but continued to be a major customer.
During this time, the founder Tetsuyoshi Funai died in 2017. Looking for business succession, in May 2021, Hidekazu System Holdings Co., Ltd. (Koto Ward) a takeover bid and became a wholly-owned subsidiary of the company, and was delisted on August 26, 2021. After that, it became a subsidiary of Hidekazu System Co., Ltd. (Koto Ward), the parent company of Hidekazu System Holdings , and the business was transferred to our company at the end of March 2023, and Funai Electric changed its trading name to Funai Electric Holdings (hereinafter referred to as Funai Denki HD). In addition, in April of the same year, Funai Electric acquired HD Musee Platinum Co., Ltd. (Minato-ku, Tokyo), which operates hair removal salons.
However, in March 2024, it was discovered that the founding family had temporarily registered a mortgage of more than 10 billion yen against the real estate of the head office and Tokyo branch (both in the name of Funai Electric HD). In addition, when the composition of the executives was changed in May, the company did not provide any clear explanation, which led to higher concerns about trust. In addition, Musee Platinum was unable to pay a debt of about 2.2 billion yen to an online advertising company. A temporary seizure was filed on the shares of the company held by Funai Electric HD, which jointly and severally guaranteed the debt, and the temporary seizure order was issued on May 2.
Although a reform of the management structure was announced on 3 October, payment delays caused difficulties in purchasing materials, which led to the current situation.
* Funai Electric Co., Ltd. (TSR company code: 697425274, corporate number: 3122001036719, 7-7-1 Nakagakiuchi, Daito City, established in February 2023, capital 31,312,607,960 yen)
* Funai Electric Holdings Co., Ltd. (TSR company code: 570182948, corporate number: 2122001015871, Daito City)
*Yamada Denki Co., Ltd. (currently Yamada Holdings Co., Ltd., TSR company code: 270114270, corporate number: 4070001011201, Takasaki City, Gunma Prefecture)
*Yamada Denki Co., Ltd. (TSR company code: 134237650, corporate number: 2070001036729, Takasaki City, Gunma Prefecture)
*Hidekazu System Holdings Co., Ltd. (TSR company code: 136862659, corporate number: 2010601058062, Koto Ward)
*Hidewa System Co., Ltd. (TSR company code: 292007680, corporate number: 1010401013986, Koto Ward)
* Musee Platinum Co., Ltd. (currently MIT Co., Ltd., TSR company code: 300036639, corporate number: 3011001092832, Ota-ku)