MUJI U.S.A. Limited – Court Allows 60-Day “Abundance of Caution” Exclusivity Extensions

Register, or to view the article

November 18, 2020 – The Court hearing the MUJI U.S.A case has extended the periods during which the Debtor has an exclusive right to file a Plan and solicit acceptances thereof, through and including January 6, 2021 and March 7, 2021, respectively [Docket No. 224]. Absent the requested relief, the Plan filing and solicitation periods are scheduled to expire on November 7, 2020 and January 6, 2021, respectively.

On October 15th, the Debtor filed a Plan of Reorganization and a related Disclosure Statement [Docket Nos. 186 and 187, respectively], with a hearing to consider the adequacy of the Disclosure Statement now scheduled for November 20th and a Plan confirmation now anticipated for late December.

According to the Debtor’s requesting motion [Docket No. 213]: “While the Debtor has made substantial progress in its restructuring efforts and believe the Plan will be successfully confirmed at the confirmation hearing to be held in late December 2020, out of an abundance of caution, the Debtor seeks an extension of the Exclusive Periods in the event that the Plan is not confirmed or does not go effective prior to the expiration of the current Exclusive Periods.

…since the commencement of the Chapter 11 Case, the Debtor and its advisors have devoted a significant amount of time and effort to ensuring a smooth transition into chapter 11 and to preserving and maximizing the value of the Debtor’s estate for the benefit of all stakeholders. The Debtor and its professionals have devoted a significant amount of time energy and resources to the myriad issues attendant to the Chapter 11 Case. These tasks are being conducted against the backdrop of the COVID-19 pandemic, which has made virtually every one of the Debtor’s responsibilities during the Chapter 11 Case more difficult to address…

…While substantial progress has been made in formulating and pursuing the Plan, if the Plan is not confirmed at the confirmation hearing anticipated to be held in late December 2020, the Debtor will need to resume negotiations with its creditor constituents, and an extension of the Exclusive Periods is therefore necessary and appropriate here.”

About the Debtor

According to Ryohin: “MUJI, first launched in December 1980 as a proprietary brand of Seiyu Store (now Seiyu GK) with 40 items primarily on food, is celebrating its 40th anniversary this year. During the past years, the number of products has been increased to around 7,000, and MUJI stores are now available in 31 countries and regions including Japan. MUJI products, which are produced by constantly returning to the starting point of ‘manufacturing no-frills quality products’ and always taking into consideration the producers as well as the environment, have been enjoying continuous support from our customers around the world.

Based on our overall strategy of ‘To Serve a Purpose’ for the people and society, today we are expanding beyond the concept of retailing to provide design for self-driving buses, collaborate on specialty food sales with local people in and outside Japan – seeking in all these efforts to revitalize local communities.

In a situation where uncertainties are expected to continue due to the enormous impact of the COVID-19 pandemic worldwide, we have been, and will continue to contribute to society as a sustainable global company that provides products and services trusted by people worldwide. We would very much appreciate the continued support and understanding of our stakeholders.”

Read more Bankruptcy News