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Foodreams Seeks Court Protection

July 25, 2008

It was revealed that Foodreams Co. Ltd., specializing in frozen sushi, had applied with the Tokyo District Court for the corporate rehabilitation procedure on July 18, 2008 and received a supervisory order on the same day.

Producing and distributing frozen sushi worldwide, utilizing a unique freezing technique, in 2006 the company accepted an unmanageable number of orders of frozen Japanese New Year’s cuisine; As a consequence, handling costs and a loss of reputation and trust cost the company significant losses in revenue and created a significant deficit in the fiscal period of September 2005 to August 2006.

Nichirei Group offered a 46 percent capital infusion to the company, to no avail; Foodreams failed to regain trust, resulting in further slumps in business. This year Nichirei sold off all of its shares and it has no relation to this legal action.

Foodreams remains in the red with total sales of approximately 1.1 billion yen and total liabilities of roughly 2 billion yen in the fiscal period of September 2006 to August 2007.

Aiming towards supplying the highly demanding markets of Europe and China with frozen sushi, the company built its own plant in Shandong, China; however cumulative labor and material costs grew more quickly than volume of sales.

Translated by Kiyo Hayasaka on July 24, 2008

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