Following Godiva Japan’s LBO acquisition in 2019, the company’s president in Japan has explained the situation for the first time, as the repayment schedule for its loans is being reviewed and the term extended. The repayment deadline is expected to be extended through next March, with short-term financing of around ¥5 billion also planned.
Godiva Japan was acquired in 2019 through an LBO by MBK Partners, and an LBO loan was put in place as part of its subsequent financial structure. The latest reports concern a review of the arrangements for repaying the acquisition loan, rather than poor sales.
Godiva Japan President Jerome Chouchan explained that the banks are extending the repayment deadline because the company’s financial condition is sound, and that the review of a loan arranged 7 years ago is a routine financing discussion prompted by changes in interest rates and market conditions. The repayment deadline is expected to be extended through next March, with short-term financing of around ¥5 billion also scheduled to be provided.
The external environment, including headwinds across the chocolate industry and soaring cocoa prices, has also been cited as a factor behind the situation. These points are scheduled to be discussed in detail in the follow-up article.