W&D, an investment company owned 50% by World and 50% by the Development Bank of Japan (DBJ), has resolved to set up a new company to take over all of Uchino's business and the financial debts designated for transfer, and to make it a wholly owned subsidiary. World, which discloses W&D as an equity-method affiliate, announced the plan on October 5, 2026.
How the deal is built
The transfer follows a restructuring-support decision by the regional economy revitalization support corporation. Uchino's business and designated debts move to the successor company by absorption-type company split. W&D then plans to subscribe to a third-party share issue by the successor, and will run its management and governance. Uchino itself is to sell off the assets that do not transfer and then be liquidated.
The planned dates are November 10, 2026, for the corporation's decision to buy claims, and December 1, 2026, for the split's effective date and the share subscription. The notice does not give the size of the share issue or itemize which debts move.
The turnaround brief
W&D cites shrinking department-store demand, higher costs from currency moves and tougher competition from new entrants. It says Uchino must sharply cut inventory and fixed costs and overhaul its sales structure and site operations.
Three measures anchor the plan: expanding business-to-business work such as OEM and wholesale, rebuilding the consumer business, and a management pledge to cut fixed costs while reworking the supply chain from production to logistics to maximise cash from inventory.
What is being rescued
Uchino, incorporated in August 1947, sells towels and other lifestyle goods. It reported sales of ¥11.8bn for the year to August 2025 and total assets of ¥10.5bn, and had 612 employees, including part-timers, as of December 1, 2025. The notice lists MUFG Bank, Mizuho Bank, Shoko Chukin Bank and Japan Finance Corporation as its financial institutions it does business with.
W&D lists earlier turnaround investments including Right-on and Strasburgo.