Sumitomo's US Sub-Subsidiary Presperse Files for Corporate Rehabilitation

Sumitomo's (TYO:8053) US-based sub-subsidiary Presperse Corporation, a distributor of cosmetic ingredients, has filed for corporate rehabilitation in the US Bankruptcy Court for the District of New Jersey, the Japanese trading house said in a Tuesday filing on the Tokyo Stock Exchange.

Presperse, wholly owned by Sumitomo Corp. of Americas, filed the petition on Monday due to the financial strain from talc-related litigation costs.

The company, led by CEO Joy Atkinson, reached an agreement with plaintiffs and opted for corporate rehabilitation to continue operations.

The total liabilities of Presperse stood at $59.2 million as of March 31. Despite the bankruptcy filing, Sumitomo said the impact on its consolidated results for the fiscal year ending March 2025 would be minor, as it had already recorded 5 billion yen in litigation-related expenses for the previous fiscal year.

Sumitomo also disclosed that it had written down the value of its shares in Presperse to zero.

The trading house affirmed its commitment to expanding its global cosmetic ingredients business, continuing collaboration with Presperse and its regional operations in Japan, South America, and Europe.

For the fiscal year ending March 2025, Sumitomo forecasts profit attributable to owners of the parent of 530 billion yen, compared with 386.35 billion yen in the previous fiscal year.

Shares of the company were marginally down in recent trade.

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