Okura Holdings has announced it has closed three pachinko venues due to poor financial performance since the outbreak of the Covid-19 pandemic.
Japan.- Okura Holdings has announced the permanent closure of three more pachinko parlours, mainly due to the Covid-19 pandemic and the slow economic recovery. The company closed two venues in May due to the crisis in the sector.
Okura Holdings said the closure was to allow a focus on better-performing outlets. One of the pachinko venues is located in Fukuoka Prefecture, while the other two are in Kawasaki city, Kanagawa Prefecture. All three ceased operations on August 31.
The operator said: “Taking into account the general adverse operating landscape and the increasing competition from other forms of entertainment in Japan, the management considered it would be more beneficial to the group to focus its resources on other more promising pachinko halls.”
Okura Holdings now has 12 Pachinko Venues, most of them located in Nagasaki Prefecture.
Okura Holdings purchases a property in Nagasaki city for US$4m
In order to diversify its income streams due to the impact of the Covid-19 pandemic on its business, Okura Holdings bought a 650 square-metre lot, a seven-story building, and a parking lot situated in Nagasaki’s Sumiyoshimachi area for JPY442m (US$4m).
Okura Holdings said it has been exploring opportunities to enhance and diversify its revenue stream. It said the acquisition “provides an excellent opportunity for the group to expand its property investment portfolio.”
According to the group, the purchase “will allow the group to benefit from any future capital appreciation and generate a new source of rental income.