United Arrows pays ¥5.86B to hand its loss-making Koen brand to Mac House's successor

What happened

Why it happened

• A brand that never found its footing: Koen kept losing money for years, and the losses became a standing claim on the parent's cash.
• The exit bill grew with the wait: the longer the disposal took, the more the parent had lent, and the waiver of ¥5.86B became the real price of leaving.
• A transfer price that did not cover the debt: the shares went for ¥200 million while the loans written off were almost thirty times that amount.

Aftermath

United Arrows resolved on 26 February 2026 to waive loans of ¥5.858 billion owed by its wholly owned subsidiary Koen, as part of the transfer of all Koen shares to Gieet, formerly Mac House. The low-priced casual brand had continued to lose money. The share transfer agreement was signed on 29 January 2026 and the transfer of all shares, priced at ¥200 million, was completed on 2 March 2026. The waiver, about 15.5 per cent of consolidated net assets, carried a special loss of ¥1.795 billion in individual accounts and no impact on consolidated results, as it was eliminated on consolidation.