Tokyo announces Kanebo delisting

The Tokyo Stock Exchange announced on Thursday that it will delist Kanebo, a household goods manufacturer, on June 13 because of serious and deliberate misstatements of financial information.

This move has been expected since accusations that the company had inflated sales figures first made the news last October.

This is not the first time a company has been delisted by the Tokyo exchange for financial improprieties. Seibu Railway was delisted last year after admitting that it had lied to shareholders.

Kanebo could get its listing back after a year, according to the president of the Tokyo Stock Exchange if it meets certain requirements for restructuring with the help of the Industrial Revitalization Corporation of Japan, which is run by the government.

Kanebo is currently being reorganized by the IRCJ, which called the delisting “regrettable.” Even before the announcement on Kanebo after the close of trade Thursday, no one was interested in buying shares of the company even though the price of shares had fallen to ¥453 per share, well off their peak worth of ¥1,670, reached last September.

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