Bankrupt Matsubishi Dept Store to be demolished

Demolition preparation work has started on the Matsubishi Department Store in Hamamatsu City, Shizuoka Prefecture. The building is expected to be completely demolished by the end of July, 2012.

The total cost is expected to reach 500 ~ 600 million Yen and will be shared amongst the landholders, which include Asahi Corporation.

The main building of the Matsubishi Department Store was completed in 1936. It suffered damage but miraculously survived the bombing of Hamamatsu in WWII which destroyed 60 percent of the city. Later, in 1956, the store was home to the first escalator in Shizuoka Prefecture.

In 2001, Matsubishi Co., declared bankruptcy with debts of 32.8 billion Yen. Asahi had plans to construct a new commercial building, with a planned completion date of early 2008, and “Loft” was expected to be a major tenant. However, Loft pulled out of the deal and with no other tenants, Asahi gave up on the redevelopment.

Later in 2007, Daimaru Department Store was announced as a potential new tenant. The scheduled opening of the new store was in 2010, then delayed until 2011 due to disagreement by the three landholders. Unfortunately the downturn in the economy stemming from the Lehman Shock in 2008 and the worsening conditions of Hamamatsu City’s economy caused Daimaru to walk away from the deal.

Sources:
The Chunichi Shimbun, December 13, 2011.
Matsubishi Co., Ltd. Wikipedia Page

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