Store Closures and Sharp Sales Decline Due to COVID-19, and Doubts Regarding the Going Concern Assumption
First written in FY2021-Q1. 8 of 17 entries say "Mitigated", first in FY2021-Q2. Latest entry: 2026-05-14.
The whole theme swung hardest in 2023: 1 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- 2026-05-14MitigatedRevision of earnings forecastsSuggests it is closing out
「Not applicable.」
The note on going-concern assumptions states that there are no applicable matters, suggesting that significant events concerning the going-concern assumption have subsided. - FY2024MitigatedAnnual report
「As a result, supported in part by higher revenue accompanying the recovery in demand for eating out, the Group recorded operating profit of ¥1.3 billion and net income attributable to owners of the parent of ¥938 million for the current fiscal year. Based on these circumstances, the Group determined that the events or circumstances that had raised substantial doubt about the going concern assumption had been resolved during the current fiscal year.」
The Group recorded operating profit of ¥1.3 billion and net income attributable to owners of the parent of ¥938 million, and stated that it had determined that the events and circumstances raising substantial doubt about the going concern assumption had been resolved. - FY2024-Q3MitigatedAnnual report
「During the cumulative third-quarter consolidated period, none of the major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies arose among the matters concerning the business and accounting conditions described in this quarterly report. Of the risks described in the annual securities report for the previous fiscal year, the significant events and other matters concerning the going concern assumption had been resolved as of the end of the second-quarter consolidated accounting period.」
The Group stated that no major risks arose during the quarter and reaffirmed its judgment that the significant events and other matters concerning the going concern assumption had been resolved as of the end of the second quarter. - FY2024-Q2MitigatedAnnual report
「Based on these circumstances, we determined that, as of the end of the second-quarter consolidated accounting period, the events or circumstances that had raised substantial doubt about the going concern assumption had been resolved.」
In light of the continuing operating losses, the recording of operating profit, measures to restore performance, and the expected recording of operating profit going forward, the Group stated that it had determined that the events and circumstances raising substantial doubt about the going concern assumption had been resolved. - FY2024-Q1MitigatedAnnual report
「Due to the impact of COVID-19, the Group recorded operating losses for 3 consecutive fiscal years through the previous fiscal year, but recorded operating profit of ¥191.471 million in the cumulative first-quarter consolidated period. However, as the outlook remains uncertain due to the response to COVID-19, the ongoing depreciation of the yen, and higher raw material and energy prices, events or circumstances that raise substantial doubt about the going concern assumption continue to exist.」
Against operating losses recorded for 3 consecutive fiscal years through the previous fiscal year, the Group recorded operating profit of ¥191.471 million in the first quarter. At the same time, it states that events and circumstances raising substantial doubt about the going concern assumption continue to exist, while maintaining its judgment that no significant uncertainty exists. - FY2023RestatedAnnual report
「Due to a sharp decline in revenue resulting from the impact of COVID-19, the Group has events or circumstances that raise substantial doubt about its ability to continue as a going concern. To address this situation, it has secured the working capital it requires by borrowing from its banking partners and receiving various subsidies and cooperation payments. Accordingly, we have determined that there is no significant uncertainty regarding the going concern assumption.」
The Group continues to disclose significant events related to the going concern assumption arising from the sharp decline in revenue, measures to secure funds through borrowings and subsidies, and its judgment that no significant uncertainty exists. - FY2023-Q3RestatedAnnual report
「Due to a sharp decline in revenue resulting from the impact of COVID-19, the Group has events or circumstances that raise substantial doubt about its ability to continue as a going concern. To address this situation, in prior fiscal years the Group borrowed ¥10 billion under overdraft facilities with its banking partners and ¥2 billion from a new financial institution, and has received various subsidies and cooperation payments. Going forward, we expect COVID-19 to gradually subside as the number of infections fluctuates, as the coexistence of infection prevention and economic activity becomes established, and expect revenue to recover gradually. In terms of earnings, in preparation for a prolonged downturn, we are working to lower and maintain the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses. Accordingly, we have determined that there is no significant uncertainty regarding the going concern assumption.」
The Group continues to disclose events and circumstances raising substantial doubt about the going concern assumption, measures to secure funds through borrowings, subsidies and other sources, its assumption of a recovery in revenue, efforts to lower the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses, and its judgment that no significant uncertainty exists. - FY2023-Q2RestatedAnnual report
「Due to a sharp decline in revenue resulting from the impact of COVID-19, the Group has events or circumstances that raise substantial doubt about its ability to continue as a going concern. To address this situation, in prior fiscal years the Group borrowed ¥10 billion under overdraft facilities with its banking partners and ¥2 billion from a new financial institution, and has received various subsidies and cooperation payments. Going forward, we expect COVID-19 to gradually subside as the number of infections fluctuates, as the coexistence of infection prevention and economic activity becomes established, and expect revenue to recover gradually. In terms of earnings, in preparation for a prolonged downturn, we are working to lower and maintain the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses. Accordingly, we have determined that there is no significant uncertainty regarding the going concern assumption.」
The Group continues to disclose events and circumstances raising substantial doubt about the going concern assumption, measures to secure funds through borrowings, subsidies and other sources, its assumption of a recovery in revenue, efforts to lower the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses, and its judgment that no significant uncertainty exists. - FY2023-Q1RestatedAnnual report
「Due to a sharp decline in revenue resulting from the impact of COVID-19, the Group has events or circumstances that raise substantial doubt about its ability to continue as a going concern. To address this situation, in prior fiscal years the Group borrowed ¥10 billion under overdraft facilities with its banking partners and ¥2 billion from a new financial institution, and has received various subsidies and cooperation payments. Going forward, we expect COVID-19 to gradually subside as the number of infections fluctuates, as the coexistence of infection prevention and economic activity becomes established, and expect revenue to recover gradually. In terms of earnings, in preparation for a prolonged downturn, we are working to lower and maintain the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses. Accordingly, we have determined that there is no significant uncertainty regarding the going concern assumption.」
The Group continues to disclose events and circumstances raising substantial doubt about the going concern assumption, prior-year borrowings, subsidies and cooperation payments, its assumption of a recovery in revenue, and efforts to lower the break-even point by closing unprofitable stores and reviewing selling, general and administrative expenses. - FY2022RestatedAnnual report
「Due to a sharp decline in revenue resulting from the impact of COVID-19, the Group has events or circumstances that raise substantial doubt about its ability to continue as a going concern. To address this situation, during the previous fiscal year the Group borrowed ¥10 billion under overdraft facilities with its banking partners, and during the current fiscal year borrowed ¥2 billion from a new financial institution. The Group has also applied for employment adjustment subsidies and subsidies for cooperation in preventing the spread of infection, thereby securing the working capital it requires. Going forward, we expect COVID-19 to gradually subside as the number of infections fluctuates, supported by measures to prevent infection and the wider adoption of vaccinations, and expect revenue to recover gradually. Accordingly, we have determined that there is no significant uncertainty regarding the going concern assumption.」
Although circumstances raising substantial doubt about the going concern assumption continue, the Group has disclosed borrowings of ¥10 billion and ¥2 billion, subsidies and cooperation payments, and its assumption of a recovery in revenue, and has reaffirmed its judgment that no significant uncertainty exists. - FY2022-Q3RestatedAnnual report
「The Group has events or circumstances that raise substantial doubt about the going concern assumption due to the sharp decline in sales caused by COVID-19. To address this situation, it drew down ¥10 billion under overdraft facilities with its financial institutions during the previous consolidated fiscal year and borrowed ¥2 billion from a new financial institution during the current third-quarter cumulative consolidated accounting period. It has also applied for employment adjustment subsidies and grants for cooperation in preventing the spread of infections, thereby securing the necessary working capital. Going forward, although there is a risk of a renewed spread of infections even after the so-called sixth wave, the Company expects the spread of COVID-19 to be contained to a certain extent as infection-prevention measures and vaccinations progress, with sales recovering gradually. In terms of profits, the Company is working to lower the break-even point by controlling the cost of sales and personnel expenses, closing unprofitable restaurants and reducing costs through a review of expenses in preparation for a prolonged downturn. Accordingly, the Company has determined that no material uncertainty exists regarding the going concern assumption.」
Although circumstances raising substantial doubt about the going concern assumption continue, the Company has disclosed borrowings, subsidies and grants for cooperation, cost reductions and other measures, and continues to determine that no material uncertainty exists. - FY2022-Q2MitigatedAnnual report
「The Group has events or circumstances that raise substantial doubt about the going concern assumption due to the sharp decline in sales caused by COVID-19. To address this situation, it drew down ¥10 billion under overdraft facilities with its financial institutions during the previous consolidated fiscal year and borrowed ¥2 billion from a new financial institution during the current second-quarter cumulative consolidated accounting period. It has also applied for employment adjustment subsidies and grants for cooperation in preventing the spread of infections, thereby securing the necessary working capital. Going forward, although there is a risk of a renewed spread of infections, the Company expects the spread of COVID-19 to be contained to a certain extent as infection-prevention measures and vaccinations progress, with sales recovering gradually. In terms of profits, the Company is working to lower the break-even point by controlling the cost of sales and personnel expenses, closing unprofitable restaurants and reducing costs through a review of expenses in preparation for a prolonged downturn. Accordingly, the Company has determined that no material uncertainty exists regarding the going concern assumption.」
Although events and circumstances raising substantial doubt about the going concern assumption continue, the Company has borrowed ¥2 billion from a new financial institution and is proceeding with applications for subsidies and grants for cooperation, cost-of-sales and personnel-expense controls, closure of unprofitable restaurants and expense reductions. The Company continues to determine that no material uncertainty exists. - FY2022-Q1MitigatedAnnual report
「The Group has events or circumstances that raise substantial doubt about the going concern assumption due to the sharp decline in sales caused by COVID-19. To address this situation, it drew down ¥10 billion under overdraft facilities with its financial institutions during the previous consolidated fiscal year and borrowed ¥1 billion from a new financial institution during the current first-quarter consolidated accounting period. It has also applied for employment adjustment subsidies and grants for cooperation in preventing the spread of infections, thereby securing the necessary working capital. Although sales recovered during certain periods of the previous consolidated fiscal year, overall they were significantly affected by local-government requests to shorten operating hours and requests to refrain from going out and dining out. Going forward, although there is a risk of further spread of infections due to variants, the Company expects the spread of COVID-19 to be contained to a certain extent as infection-prevention measures and vaccinations progress, with sales recovering gradually. In terms of profits, the Company is working to lower the break-even point by controlling the cost of sales and personnel expenses, closing unprofitable restaurants and reducing costs through a review of expenses in preparation for a prolonged downturn. Accordingly, the Company has determined that no material uncertainty exists regarding the going concern assumption.」
Although circumstances raising substantial doubt about the going concern assumption remain, the Company has disclosed additional borrowings, subsidies and grants for cooperation, infection-prevention measures, its expected sales recovery, control of costs of sales and personnel expenses, closure of unprofitable restaurants and expense reductions, and has determined that no material uncertainty exists. - FY2021WorsenedAnnual report
「Sales gradually recovered after the state of emergency was lifted in May 2020, but temporarily stalled from July onward because of requests to shorten operating hours as the number of infections increased. Sales began recovering again after the requests to shorten operating hours ended in mid-September, but from late November onward the third wave of infections arrived, a second state of emergency was declared in January 2021 and a third in April, and infections involving variants also spread.」
The filing states that the sales recovery stalled because of requests to shorten operating hours and that sales were significantly affected again by the third wave, the second and third states of emergency, and the spread of variants. Circumstances raising substantial doubt about the going concern assumption also continue. - FY2021-Q3WorsenedAnnual report
「Sales gradually recovered after the state of emergency was lifted in May 2020, but temporarily stalled from July onward because of requests to shorten operating hours as the number of infections increased. Sales began recovering again after the requests to shorten operating hours ended in mid-September, but from late November onward they were significantly affected as local governments again requested shorter operating hours following the arrival of the third wave of infections, while calls to refrain from going out and dining out again intensified.」
The filing states that the sales recovery stalled because of requests to shorten operating hours and that sales were significantly affected again by the arrival of the third wave and renewed calls to refrain from going out and dining out. At the same time, the Company continues to determine that, although circumstances raising substantial doubt about the going concern assumption exist, no material uncertainty exists. - FY2021-Q2MitigatedAnnual report
「The Group has events or circumstances that raise substantial doubt about the going concern assumption due to the sharp decline in sales caused by COVID-19. To address this situation, it drew down funds under its existing overdraft facility in late April. In May, it entered into a new overdraft facility with its financial institutions and drew down funds under that facility in late September, securing the necessary working capital. Sales are gradually recovering, and to prepare for a prolonged downturn, the Group is working to secure profitability by closing unprofitable restaurants and reducing costs through a review of expenses. Accordingly, although events or circumstances that raise substantial doubt about the going concern assumption exist, the Company has determined that no material uncertainty exists.」
Although circumstances that raise substantial doubt about the going concern assumption continue, the Company has disclosed securing working capital through additional borrowings, a trend toward sales recovery, the closure of unprofitable restaurants and cost reductions, and has determined that no material uncertainty exists. - FY2021-Q1First statedAnnual report
「Since the beginning of 2020, the Group has been affected by the spread of COVID-19. Total sales at the Company's restaurants in March 2020 were 47.5% of the prior-year level. Following the declaration of a state of emergency in April, restaurant closures and shortened operating hours resulted in total sales at the Company's restaurants being 9.3% of the prior-year level in April, 9.6% in May and 26.2% in June. Accordingly, the sharp decline in sales has resulted in events or circumstances that raise substantial doubt about the going concern assumption.」
The filing states that the sharp decline in sales, restaurant closures and shortened operating hours caused by COVID-19 actually occurred and constituted events or circumstances that raise substantial doubt about the going concern assumption.