Risk of Failing to Recoup Investments in New Stores, Brands and E-Commerce
First written in FY2019. 1 of 2 entries say "Materialised", first in FY2020. Latest entry: FY2020.
Rvh moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 83 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「In light of the high likelihood that a large capital injection would be necessary because there was no prospect of improving performance, and after considering the risk to business continuity, we decided to transfer all shares of LQ Co., Ltd. to 株式会社Ｊｒｏｕｔ in order to avoid an increase in risks arising from uncontrollable uncertainties.」
The risk that new investments in and capital injections into a subsidiary would fail to produce the expected results materialized for ラブリークィーン as a lack of prospects for improved performance and the possibility of a large capital injection, ultimately leading to the transfer of its shares. - FY2019First statedAnnual report
「We believe that various business investments will continue to be necessary, including new store development, costs for exiting unprofitable stores, development of new brands and system upgrades for online sales of products. If the intended results are not achieved because the business does not progress as expected, this could affect the business and performance of our Group.」
The company indicates that investments in store development, store exits, new brands and e-commerce system upgrades may fail to produce the expected results or be recovered.