TOKYO (AFP) - Debt-ridden Japanese retailer Daiei decided to seek help from a state-backed corporate body, reversing an earlier decision after repeated heavy pressure from its creditors.
"I report that we have decided to accept the proposal to utilise the Industrial Revitalisation Corp. of Japan (IRCJ)," Daiei president Kunio Takagi told reporters after meeting Trade Minister Shoichi Nakagawa.
Nakagawa said he welcomed the decision made by the troubled retailer.
"I want to respect the fact the decision was made by Daiei as a private-sector firm," Nakagawa said.
The announcement followed last-ditch talks between Takagi and executives from Daiei's three main creditor banks -- UFJ Bank, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank.
Representatives at the IRCJ were not available for immediate comment.
Daiei, which operates around 250 supermarkets and has been eyed up by US investors including retail giant Wal-Mart, had said previously it would ask for support from private companies but not the state-backed IRCJ.
Its main creditor banks on Tuesday put pressure on Daiei to seek public help, warning they could otherwise stop extending assistance.
UFJ Holdings, the smallest of the big four Japanese banking groups, is desperately seeking to cut its bad loan burden before a planned merger with second-ranked Mitsubishi Tokyo Financial Group to create the world's largest bank by October 2005.