Risk of contract renewal and securing alternative fulfillment centers
First written in FY2021. 2 of 5 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2025.
0 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The Company had recorded a provision for losses on the closure of business sites for the estimated costs that could reasonably be estimated among the contractual payments relating to the 3 FC sites to be closed. Following negotiations, the Company completed the payments relating to the 3 FC sites to be closed, and, as there are no further FC closures scheduled, it reversed the provision.」
The contractual payments associated with the closure of 3 sites were completed, and the provision for losses on the closure of business sites was reversed. The Company states that the rent and penalty obligations related to the closures that had become specific in the previous fiscal year have been settled. - FY2025-H1MitigatedAnnual report
「This was due to cash outflows, including ¥160.000 million in lease termination penalties paid in connection with the closure of fulfillment centers.」
The Company paid ¥160.000 million in lease termination penalties in connection with FC closures and states that closure-related costs were actually recognized. - FY2024WorsenedAnnual report
「The Company notified the landlords of its decision to terminate the leases for 3 FCs as of the end of June 2024. However, there is concern that the Company may have to bear rent payable between the termination date and the contract expiry date if no successor tenant is found. The maximum payment under the contracts is ¥1,315.339 million, of which ¥362.277 million has been recorded as a provision for losses on the closure of business sites, representing the estimated amount of costs that can reasonably be estimated based on the status of negotiations.」
Following the decision to terminate the leases for 3 FCs, the risk of bearing rent if successor tenants cannot be secured became specific. The Company disclosed a maximum payment of ¥1,315.339 million and a provision of ¥362.277 million. - FY2022RestatedAnnual report
「If these lease agreements cannot be continued for any reason, the Company plans to open new FCs or use existing FCs. However, if it cannot secure alternative sites, this could affect the Company's operating results and financial condition.」
The policy for securing alternative sites if FC contracts cannot be continued, and the impact if this fails, are reiterated. - FY2021First statedAnnual report
「If these lease agreements cannot be continued for any reason, the Company plans to open new FCs or use existing FCs. However, if it cannot secure alternative sites, this could affect the Company's operating results and financial condition.」
The possibility of renewing or terminating fixed-term and ordinary lease agreements before expiry, and the impact if alternative sites cannot be secured, are identified as risks.