World Co., Ltd. is acquiring Right-on Co., Ltd. to strengthen its operational control and facilitate a swift restructuring for a return to profitability.

Target Information

World Co., Ltd., a leading player in the apparel industry, has announced its intention to wholly acquire Right-on Co., Ltd., a casual clothing retailer, through a stock exchange agreement. This acquisition is part of World’s strategy to swiftly implement operational restructuring at Right-on, which had been operating as an equity-method affiliate under World since January 2025. Right-on has been entangled in financial difficulties, reporting a net loss for seven consecutive periods until August 2025. By fully integrating Right-on into its structure, World aims to enhance its restructuring efforts and facilitate a quick return to profitability.

As of August 2025, Right-on reported significant declines in performance, with sales dropping 27.5% to 28.1 billion yen and an operating loss of 454 million yen. Despite improvements from previous substantial losses, the company has yet to achieve a return to the black. The restructuring process involving store closures and workforce rationalization has not been sufficient to overcome the challenges posed by changing consumer behaviors influenced by the COVID-19 pandemic and the rapid growth of online retail.

Industry Overview

The retail apparel industry in Japan has faced considerable upheaval in recent years, largely driven by shifting consumer preferences and the pandemic's lasting impacts. Before the pandemic, the retail clothing m