Leopalace21 Pres. to Resign over Shoddy Apartment Construction

Jiji Press

Leopalace21 Corp. President Eisei Miyama, center, bows at a briefing on the company’s financial results in Chuo Ward, Tokyo, on Friday.

Jiji Press TOKYO (Jiji Press) — Leopalace21 Corp. said Friday that President Eisei Miyama, 61, will resign on May 30 over its shoddy apartment construction, which is suspected of violating the Japanese building standards law.

Also on Friday, the major apartment rental firm reported a group net loss of ¥68,662 million for the year that ended in March, due partly to costs for repairs to affected apartment buildings. In the preceding year, the company posted a net profit of ¥14,819 million.

Miyama will be replaced by Bunya Miyao, 59, who has served as managing executive officer since April 2018.

At a press conference on Friday, Miyama apologized for damaging the company’s value and causing the large loss. He expressed his readiness to work as a corporate director after stepping down as president.

Miyao vowed to work to settle the matter as soon as possible thanks to the unity of company workers. The incoming president said the company is expected to return to a net profit of ¥100 million in the year through March 2020.

In February, Leopalace21 announced that construction flaws had been found in a total of 1,324 apartment buildings in 33 prefectures.

At that time, Miyama said he would leave his fate to outside directors after the company checks all of its some 39,000 apartment buildings. The probe is not yet complete, however.

The outgoing president is a nephew of the founder of Leopalace21, Yusuke Miyama, who resigned from the presidential post in 2006 over the misappropriation of funds collected from apartment residents for mutual aid.Speech

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