Japan’s Okura Holdings closes three pachinko halls due to poor performance due to COVID
The Japanese pachinko industry continues to close contracts with one of the country’s largest pachinko hall operators, announcing the closure of three halls.
Okura Holdings said on Tuesday that its the Big Apple. Dazaifu Hall in Fukuoka, Big Apple. Sumiyoshi Hall in Nagasaki and Monaco Sumiyoshi Honten Hall in Nagasaki will cease operations from August 31, 2021 due to poor performance.
In particular, the company said the three have shown “a deterioration in operational and financial performance since the outbreak of coronavirus disease 2019 in Japan in January 2020 and the resulting low overall customer traffic since early 2020. .
“Despite the continuous efforts of the Group and consequently, these three pachinko halls continue to record losses from their respective operations. Given the generally unfavorable operating landscape, intense competition in the pachinko industry and growing competition from other forms of entertainment in Japan, management considered that it would be more advantageous for the Group to concentrate its resources on the other more promising pachinko. halls by improving the customer experience and minimizing additional losses related to commercial operations by closing these three pachinko halls with lower performance.
Okura said he expects to record a nominal loss on the disposal of property, plant and equipment for the six-month period ending December 31, 2021 in connection with the closure of the halls.
The closures leave Okura 12 pachinko rooms in operation, having closed two more rooms in May.