Toshiba’s chairman resigns as company looks to take $6.3M hit
The company is launching an internal investigation into potential wrongdoing involving an acquisition of a nuclear power provider, and might have to file for bankruptcy.
The company said it planned to take a $6.3 billion write-down related to a construction company that its nuclear power division acquired in 2015.
The Washington Post reported that the Toshiba, which employs close to 200,000 workers, might have to file for bankruptcy.
Toshiba executives planned to share fourth-quarter earnings on Tuesday, but the report never came. Officials claimed that they weren’t ready, and asked for an additional month to file.
That’s when things went from bad to worse: The company’s chairman, Shigenori Shiga, announced he was taking responsibility for the company’s woes and would step down Wednesday.
The problems started in 2006, when Toshiba acquired a majority stake in United States-based nuclear power provider Westinghouse for $5.4 billion. That acquisition has largely turned out to be a failure.
The New York Times reported:
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