MIRA
INFORM REPORT
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Report Date : |
2nd
November 2006 |
IDENTIFICATION
DETAILS
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Name : |
BARNEYS JAPAN CO LTD |
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Registered Office : |
H&I Bldg 4F, 5-17-18 Shinjuku Shinjukuku
Tokyo 160-0022 Japan |
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Country : |
Japan |
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Financials (as on) : |
28/02/2006 |
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Date of Incorporation : |
Jun 1989 |
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Legal Form : |
Limited Company |
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Line of Business : |
Operates apparel chain stores |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 63.6 MILLION |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name
BARNEYS
JAPAN CO LTD
REGD NAME
KK
Barneys Japan
MAIN OFFICE
H&I
Bldg 4F, 5-17-18 Shinjuku Shinjukuku Tokyo 160-0022 JAPAN
Tel:
03-5155-6710
*..
Registered at: 3-14-1 Shinjuku Shinjukuku Tokyo
E-Mail address: (thru the
URL)
ACTIVITIES
Operates apparel chain stores
STORE(S)
Shinjuku, Ginza (Tokyo), Yokohama
OFFICERS
NAOKI NAKAMURA, PRES Shigeru Ohashi, rep dir
Akinori Ohtake, dir Nobuhiko Tsukahara, dir
Noriaki Shoji, dir Hideaki Fujisawa, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 15,611 M
PAYMENTS REGULAR CAPITAL Yen 4,990 M*
TREND STEADY WORTH Yen 518 M
STARTED 1989 EMPLOYES 300
*.. Increased the capital Aug/2006 from Yen 2,490 million.
COMMENT
APPAREL CHAIN STORE OPERATOR, JOINTLY OWNED BY SUMITOMO CORP AND TOKIO MARINE CAPITAL CO. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 63.6 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established as a JV by Barneys New York and Isetan Co Ltd, department operator, Tokyo in order to operate Barneys New York clothing stores in Japan. In Jun 2006, Isetan Co sold the entire share in the company to Sumitomo Corp and Tokio Marine Capital Co, an investment fund affiliated with Tokio Marine & Nichido Fire Insurance Co. By this transfer, the new partners obtained the rights to the Barneys brand for Japan. By selling Barneys Japan, Isetan aims to focus on its department store operation and better compete with rivals Takashimaya, Daimaru, other.
Barneys Japan sells such foreign luxury brands as Armani & Gucci, in addition to the Barneys brand. 70% of the apparel & accessories are directly imported.
Sumitomo Corp intends to expand the retailer into a major chain and roughly double sales to Yen 30,000 million by adding stores in Osaka, Nagoya and Kobe over the next five to six years. The trading house will also consider taking Barneys Japan public.
FINANCIAL INFORMATION
The sales volume for Feb/2006 fiscal term amounted to Yen 15,611 million, a 27% hike from Yen 12,336 million in the previous term. Consumer spending revived. The operations came back to profitability to register Yen 391 million net profit, compared with Yen 53 million net losses a year ago.
For the current term ending Feb 2007 the net profit is projected at Yen 400 million, on a 5% rise in turnover, to Yen 15,300 million. 5% hike is the minimum targets, according to the firm.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 63.6 million, on 30 days normal terms. The rating and financial worthiness are assessed on the back of strong financial back ups by Sumitomo Corp and Tokio Marine Capital.
REGISTRATION
Date Registered: Jun 1989
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400,000 shares
Issued: 255,601 shares
Sum: Yen 4,990.482 million*
*.. Increased the capital in Aug/2006 from Yen 2,490 million.
Major shareholders (%): Sumitomo Corp*(50.1), Tokio Marine Capital (49.9)
No. of shareholders: 2
*.. One of leading general trading house, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya S/E’s, turnover Yen 10,336,265 million, recurring profit Yen 247,807 million, net profit Yen 160,237 million, total assets Yen 6,711,894 million, net worth Yen 1,303,975 million, employees 51,700, pres Motoyuki Oka
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Operates 3 chain stores in Shinjuku, Ginza (--Tokyo) and Yokohama (--100%), retailing men’s & women’s high-end apparel, clothing accessories, cosmetics, golf wear, gift items, accessories, handling foreign luxury brands as Armani and Gucci, in addition to the Barneys brand. About 70% of the goods are directly imported.
Clients: Consumers
No. of accounts: Unavailable
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from Barneys New York, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (Shinjuku)
Mizuho Bank (Shinjuku-Chuo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
28/02/2006 |
28/02/2005 |
28/02/2004 |
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Annual Sales |
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15,611 |
12,336 |
10,334 |
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Recur. Profit |
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-437 |
-314 |
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Net Profit |
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391 |
-53 |
-653 |
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Total Assets |
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7,422 |
4,241 |
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Current Assets |
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4,487 |
3,371 |
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Current Liabs |
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4,805 |
3,567 |
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Net Worth |
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518 |
572 |
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Capital, Paid-Up |
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2,490 |
2,490 |
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<Analytical Data> |
(%) |
(%) |
(%) |
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S.Growth Rate |
26.55 |
19.37 |
-2.12 |
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Current Ratio |
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93.38 |
94.51 |
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N.Worth Ratio |
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6.98 |
13.49 |
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R.Profit/Sales |
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-3.54 |
-3.04 |
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N.Profit/Sales |
2.50 |
-0.43 |
-6.32 |
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Notes: Financials are only disclosed in digested statement.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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