Termination of Lease Agreements for Leased Properties and Recovery of Deposits
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2020.
The whole theme swung hardest in 2022: 5 of 18 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2020MitigatedAnnual report
「As countermeasures, the Company emphasizes regular communication with lessors and, when renewing leases, communicates its intentions and conducts careful negotiations well in advance of the deadline to avoid renewal problems. Regarding the recovery of security deposits and other deposits, it seeks to mitigate the potential emergence of risk by offsetting them against rent as appropriate and taking steps to preserve its claims, including registering its right to demand repayment when leases are executed.」
The Company has specified measures addressing risks related to leased properties and security deposits, including lease-renewal negotiations, offsetting deposits against rent and registering rights to demand repayment. - FY2018RestatedAnnual report
「The Group primarily opens stores in leased properties. If a lease is terminated before the end of its term or cannot be renewed due to circumstances on the lessor's side, the Group may be forced to close a store even if it is performing well.」
The disclosure again identifies the risk of lease termination or non-renewal associated with a store model primarily based on leased properties. - FY2016First statedAnnual report
「If a lease is terminated before the end of its term or cannot be renewed due to circumstances on the lessor's side, the Company may be forced to close a store even if it is performing well.」
The disclosure identifies the possibility that, under a store model primarily based on leased properties, leases may not be renewed and security deposits or other deposits may be difficult to recover.