Paper Reports Between Wal-Mart and Mycal

Mycal Corp., the fourth-largest supermarket chain in Japan, wants to talk again with Wal-Mart Stores Inc. about selling some of its stores after it filed for court protection from creditors Sept. 14, according to the Nihon Keizai Shimbun, a daily business newspaper.

The paper’s article, which was picked up by the Reuters press service, said the two retailers would likely launch detailed talks the week of Sept. 17 focused on the possible sale of about 20 of Mycal’s profitable stores as well as cooperation in store operations and merchandise supply.

A Mycal spokeswoman denied the newspaper’s report, saying the company had not come to a final decision on its restructuring strategy.

If Wal-Mart buys the profitable stores, it would give the world’s largest retailer a foothold to launch operations in Japan.

Carrefour SA of France, the world’s second-largest retailer, opened its first outlet in Japan last winter and plans to expand.

Mycal collapsed Sept. 14 with 1.39 trillion yen ($11.81 billion) in parent-only liabilities and 1.74 trillion yen in group debt. ($1 equaled 117.65 yen at the time this article was written.)

Mycal believes Wal-Mart’s assistance would be more effective than other firms’ to help it recover its creditworthiness and improve its retailing profitability, the newspaper said.

The reduction of Mycal’s interest-bearing debt through court proceedings would ease Wal-Mart’s concerns of a negative effect on its credit standing, the Nihon Keizai said.

Mycal’s shares will be delisted on Dec. 15 after being placed in the liquidation section in mid-September.