Takashimaya store to remain open

Japanese department store Takashimaya is regaining confidence in the China market and has decided not to pull out of Shanghai.

The Osaka company will not be liquidating its China affiliate after it gained support from local governments, it said in an official statement on Friday. 

Shanghai Takashimaya’s shareholders were scheduled to vote on the proposal to dissolve and liquidate the China affiliate on August 25.

"We have gained support from the landlord, Changning District and the city, and we will continue our business," it said, adding that it will become a high-quality department store.

The Shanghai Takashimaya store has a floor space of about 40,000 square meters and mostly targets well-off Chinese shoppers with luxury items and catering.

With a registered capital of 490 million yuan (US$71 million), the Shanghai store made net losses for the past three years. In the fiscal year that ended in February 2019, it reported a net loss of 8.6 million yuan.