Risk of Store Closures Due to Fixed-Term Lease Agreements
First written in FY2016. 6 of 14 entries say "Restated". Latest entry: FY2026.
Towa Food Service moved to the "Worse" side of this theme in 2018, 8 years before the typical company in this theme (2026).
The whole theme swung hardest in 2024: 3 of 12 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Most of the Company's stores are leased. In particular, fixed-term lease agreements may not be renewed after they expire.」
Continues to identify the risk of store closures due to the non-renewal of leases for leased stores, including fixed-term lease agreements. - 2026-06-20MitigatedGeneral Meetings of Shareholders
「We regard the expiry of a fixed-term lease without renewal as an opportunity to refine the business format and will work to secure long-term contracts by proposing major renovations and new business formats to developers.」
Continued to present renovations and proposals for new business formats as measures to address the risk of fixed-term lease expirations and secure long-term contracts. - FY2026-H1WorsenedAnnual report
「Because the Company primarily opens stores in leased properties, if a lessor becomes insolvent or otherwise unable to continue operations, making continued use of the property or collection of receivables difficult, this could affect the Company's operating results and financial position.」
Newly identifies, in addition to the risk of non-renewal of fixed-term lease agreements, difficulty in continuing to use stores and collecting receivables if a lessor becomes insolvent or otherwise encounters financial difficulties. - FY2025RestatedAnnual report
「Among our lease agreements, fixed-term lease agreements in particular may not be renewed after expiration. In such cases, this could affect the Company's operating results and financial position.」
Continues to identify the risk of store closures if fixed-term lease agreements are not renewed after expiration. - FY2023RestatedAnnual report
「Among our lease agreements, fixed-term lease agreements in particular may not be renewed after expiration.」
Continues to identify the risk of store closures if fixed-term lease agreements are not renewed after expiration. - FY2022MitigatedAnnual report
「As part of these measures, in the previous fiscal year we renovated Minato Mirai Collet Mare Tsubakiya Café and developed a new format, Saryo SIKI ~TSUBAKIYA~, themed around Japanese aesthetics and matcha, which enabled us to renew the contract with the developer.」
Describes a case in which renovating an existing store and converting it to a new format led to renewal of the contract with the developer in response to the risk of store closure under a fixed-term lease agreement. - FY2021RestatedAnnual report
「With the further spread of online sales, commercial facilities have become increasingly dependent on real estate revenue, making store closures under non-renewable fixed-term lease agreements a high risk for profitable stores.」
Continues to describe, in strong terms, the risk of store closures due to non-renewable fixed-term lease agreements, linking it to changes in the revenue structure of commercial facilities. - FY2020MaterialisedAnnual report
「The timing of fixed-term lease agreements overlapped, resulting in a net decrease of 4 stores.」
Records an actual decrease of 4 stores due to overlapping expiration dates for fixed-term lease agreements. - FY2019WorsenedAnnual report
「With the growing popularity of online sales, represented by Amazon, shopping centers have become increasingly dependent on real estate revenue, heightening the risk of withdrawal under fixed-term lease agreements that cannot be renewed. In addition, tenant costs for renovation work at renewal, including extended closures, and restoration costs upon termination are increasing and becoming a factor putting pressure on earnings.」
In addition to the risk of withdrawal under fixed-term lease agreements, explicitly identifies the increased burden from renovation costs at renewal and restoration costs upon termination. - FY2019-Q3MaterialisedAnnual report
「We also recorded the closure of Ducky Duck and Pastakan, located in Yokosuka Shoppers Plaza, whose closure was decided following the shopping center's withdrawal at the end of March, as well as impairment losses on unprofitable stores.」
A store closure was decided following the shopping center's withdrawal, specifically materializing the risk of store closures involving leased stores and shopping centers. - FY2019-Q2MaterialisedAnnual report
「In the previous fiscal year, a succession of stores closed as their shopping center fixed-term lease agreements expired,」
States that a succession of stores actually closed in the previous fiscal year due to the expiration of fixed-term lease agreements. - FY2018RestatedAnnual report
「Most of the Company's stores are leased. In particular, fixed-term lease agreements may not be renewed after they expire.」
Continues to identify the risk of store closures due to the non-renewal of leases for leased stores, including fixed-term lease agreements. - FY2017RestatedAnnual report
「Most of the Company's stores are leased. In particular, fixed-term lease agreements may not be renewed after they expire.」
Continues to identify the risk of store closures due to the non-renewal of leases for leased stores, including fixed-term lease agreements. - FY2016First statedAnnual report
「Most of the Company's stores are leased. In particular, fixed-term lease agreements may not be renewed after they expire.」
Describes the Company's reliance on leased stores and the potential impact on business performance if leases are not renewed after expiration.