Daiei wants founder's relatives to step down

By Miki Anzai
Bloomberg News Service

KOBE, Japan — Daiei Inc., Japan's No. 2 retailer, said it wants the son and son-in-law of the company's founder to step down from their roles at Daiei subsidiaries to take responsibility for the company's financial problems.

The company, which is trying to trim 2.3 trillion yen ($17.2 billion) in debt as part of a recovery effort, asked Tadashi Nakauchi, a son of founder Isao Nakauchi, to turn over his 40 percent stake in its Fukuoka Daiei Hawks baseball team and give up his role in management, Daiei spokesman Mitsuru Sano said.

The company will also ask Masahide Asano, the founder's son- in-law, to resign as president of Daiei's real estate unit, Ichiken Co.

Daiei President Kunio Takagi asked Tadashi Nakauchi yesterday to step down from the baseball team in order to "pay a price" for Daiei's troubles, spokesman Sano said.

Kobe-based Daiei reiterated last month that the company has "no intention" of selling its stakes in the Hawks and two related companies.

Daiei's three main banks have pressured company founder Isao Nakauchi, who retired as chairman in 2000, to take responsibility for his initiatives to borrow heavily to expand as Japan was sinking into a decade-long slump.

Nakauchi has already given up an estimated 2 billion yen in retirement pay.