This just in: Japan-based retail giant Muji’s USA chapter is filing for bankruptcy. This adds them to the growing list of businesses that had to take the same action after suffering severe losses due to the COVID-19 pandemic.
That said, fans of the brand’s minimalist home goods and decor need not worry as this decision only serves to restructure the company in order to shift efforts onto online sales. "Muji has felt the devastating effects of the COVID-19 pandemic on in-store retail, and as a result will take this opportunity to refocus our efforts in the United States on key regional markets and e-commerce," Muji CEO Satoshi Okazaki said in a statement.
While this entails the need to shut down a few of their stores, the brand will be continuing their operations online, along with a number of their physical shops that have already re-opened. “As we look to the future, we remain committed to growth and success as well as offering the best possible customer service experience,” Muji USA’s social media statement reads.
An article by CNN, it reports that Muji’s liabilities currently stand between $50 million to $100 million owed to an estimated 200 to 999 creditors. Alternatively, the store-sales for their Japan outlets "fell by about a half during a state of emergency in the country during April and May," reveals the Japan Times.
More than 110 companies in the US alone have declared bankruptcy as a crippling result of the global coronavirus crisis.