Electronics company Sharp will accept a 200bn yen bailout payment from banks in a time of financial difficulty for the Japanese company. The plans revealed will make this the manufacturer’s second bailout in a three year period and it after more losses and job cuts are announced. In the year to March, net losses exceeded expectations totalling 222bn Japanese yen. The company is looking to get rid of 3,500 jobs in Japan also, which accounts for around 10% of employees. The company has put the losses down to ‘lack of foresight in market changes’ and weakening of its LCD TV business in the States, whilst it is also facing hefty opposition in its integral smartphone display business.
Mizuho Bank and the Bank of Tokyo Mitsubishi UFJ will now contribute 100bn yen investing in the company whilst funding for the manufacturer’s ‘business growth strategy’ will come from Japan Industrial Solutions who will give 25bn yen to Sharp. These steps are essential to the survival of the firm in the future, according to analysts. Previously in the week, Sharp’s shares were down 25% after it announced that ‘various possibilities’ surrounding its organisation and structure were being explored.