Terumi Kiyokawa: Repaying 35 Billion Yen—A Miraculous Reform

2021/06/21

In September 2013, our company underwent a Management Buyout (MBO) and delisted after approximately 20 years as a public company (TSE 2nd Section). From there, we implemented major reforms, and a company that was on the verge of a deficit managed to repay 35 billion yen in debt within seven and a half years.

Why did we delist? It was out of a sense of crisis that, if we continued as we were, the company would collapse and be acquired. Because we were listed, our stock price, which was in the 4,000 yen range in 1998, had dropped to the 500 yen range by 2011. We had become a very affordable target for acquisition, and our core supermarket business was barely breaking even.

How did we turn it around? There was a lot of drama involved. I had never studied management, but I changed the tide by using my intuition as a homemaker and by personally cleaning the restrooms and backrooms. There were five core beliefs behind this.

The first was the determination as a leader when undertaking the MBO. It was a strong feeling that I had to do something when I thought about the employees and the local community.

The second was a reform of employee consciousness. Since we were a listed company, I think many assumed we could never go under. I shared the company's actual figures clearly with the employees and had them study management numbers.

The third is speed. The most important thing in doing business is producing results, and that meant rebuilding at breakneck speed. I am often asked, "Why does your work progress so quickly?" The answer is not to seek a score of 100. I tell my employees that a 60 is fine, just start running. It is enough if we get closer to the finished form in the end.

The fourth is education. A company is its people. They are often called "human treasures." I have raised future candidates for my brain trust by having them serve as my secretary for three months to a year. People grow by being entrusted with work that is about 30% beyond their current capacity. Developing subordinates means guiding them with affection and fostering their self-confidence.

And finally, gratitude. The work one person can do is limited. We exist thanks to our employees and business partners, and it is important to express that gratitude in words by saying "thank you." Miraculously, when you are blessed with and helped by wonderful colleagues and those around you, luck comes your way. By making changes, the numbers will follow as a result. Reform means being prepared and not fearing change.