Impairment of Store Fixed Assets and Asset Valuation Risk Associated with Store Closures

「As the company decided to close 16 stores in total, including 三代目網元 さかなや道場 与野西口店, and because the profit or loss generated by operating activities continued to be negative at 46 stores in total, including さかな酒場 魚星 平井南口店, their carrying amounts were reduced to recoverable amounts, and the reductions were recorded as impairment losses under extraordinary losses. ... Impairment losses consisted of ¥173.542 million for buildings and structures and ¥30.300 million for other assets.」

「As the company decided to close 13 stores in total, including 増毛漁港直送 遠藤水産 ＪＲ新札幌店, and because the profit or loss generated by operating activities continued to be negative at 47 stores in total, including みつ囲 新宿西口パレット店, their carrying amounts were reduced to recoverable amounts, and the reductions were recorded as impairment losses under extraordinary losses.」

「Impairment loss 341,557 32,014」

「As the company decided to close 25 stores in total, including 焼肉牛星 船堀店, and because the profit or loss generated by operating activities continued to be negative at 91 stores in total, including 九州人情酒場 魚星 錦糸町店, their carrying amounts were reduced to recoverable amounts, and the reductions were recorded as impairment losses under extraordinary losses. In addition, following a review of future plans for the business of 株式会社シーズライフ, which was absorbed in July 2023, the earnings initially projected were no longer expected to be generated. Accordingly, the carrying amount was reduced to its recoverable amount, and the reduction was recorded as an impairment loss. Impairment losses consisted of ¥284.657 million for buildings and structures, ¥1.963 million for leased assets, ¥338.660 million for goodwill, and ¥45.851 million for other assets.」

「Impairment loss 110,132 424,121」

「Impairment loss ¥50.656 million ¥341.557 million」

「Impairment loss ¥22.740 million ¥73.711 million」

「Because the Company decided to close 34 stores, including Hananomai Aeon Hofu store, and because the profits and losses generated by operating activities at 76 stores, including Sakanaya Dojo Roku-chon-no-me store, had remained negative, it reduced their carrying amounts to recoverable amounts and recognised the reduction as an impairment loss under extraordinary losses.」

「Extraordinary losses Loss on disposal of property, plant and equipment ¥2.224 million Impairment loss ¥110.132 million」

「Impairment loss ¥103.722 million ¥50.656 million」

「Impairment loss ¥38.095 million ¥22.740 million」

「Because the Company decided to close 42 stores, including Uosei Yaesu Central Exit store, and because the profits and losses generated by operating activities at 91 stores, including Anbe Toyama Ekimae store, had remained negative, it reduced their carrying amounts to recoverable amounts and recognised the reduction as an impairment loss under extraordinary losses. The impairment loss comprised ¥340.503 million for buildings and structures, ¥3.330 million for leased assets and ¥39.928 million for other assets.」

「Impairment loss ¥707.263 million ¥132.806 million」

「Impairment loss ¥376.136 million ¥103.722 million」

「Impairment loss ¥27.622 million ¥38.095 million」

「Following a comparison of total estimated undiscounted future cash flows based on forecasts of future store cash flows with carrying amounts, the Company reduced the carrying amounts to recoverable amounts for groups whose undiscounted future cash flows were below their carrying amounts, recognising the resulting reduction of ¥1,174.742 million as an impairment loss.」