Whimsy Entertainment Co has sought to distance itself from Yaohan Japan Corp, saying its operations and financial position will not be directly affected by the Japan-based firm's move to file for bankruptcy protection.
The company, which operates indoor amusement arcades, said it had no direct business relationship with Yaohan Japan, even though Yaohan International Holdings (YIH) holds 35.2 per cent of Whimsy.
YIH - controlled by the Wada family - is the flagship of the Yaohan group of five companies in Hong Kong. Yaohan Japan has a 2.38 per cent stake in YIH.
Yaohan Japan filed for bankruptcy protection after news emerged of debts totalling 161.3 billion yen (about HK$10.24 billion). Whimsy said yesterday its business with YIH was insignificant and that its management and operations were independent.
Last week, Yaohan International Caterers also sought to move away from its Japanese namesake, saying it had no connected shareholding.
Whimsy said there were no loans or financial arrangements between YIH, Yaohan Japan and Whimsy.