Japans pachinko industry continues to contract with one of the countrys largest pachinko hall operators announcing the closure of three halls.
Okura Holdings said Tuesday that its Big Apple. Dazaifu hall in Fukuoka, Big Apple. Sumiyoshi hall in Nagasaki and Monaco Sumiyoshi Honten hall in Nagasaki will cease operations from 31 August 2021 due to poor performance.
In particular, the company said all three had shown deteriorating operating and financial performance since the outbreak of the Coronavirus Disease 2019 in Japan in January 2020 and the resulting low overall customer traffic since early 2020.
Despite the Groups continuous effort and accordingly these three pachinko halls continue to record losses from their respective operations. Taking into account the general adverse operating landscape, the intense competition in the pachinko industry and the increasing competition from other forms of entertainment in Japan, the management considered that it will be more beneficial for the Group to focus its resources on the other more promising pachinko halls by enhancing customer experience there and minimise further losses from business operations by closing down these three pachinko halls with weaker performance.
Okura said it expects to record an insignificant loss on disposal of property, plant and equipment for the six months ending 31 December 2021 in relation to the closure of the halls.
The closures leave Okura with 12 operating pachinko halls, having previously closed another two halls in May.