What triggered the Regal Corporation layoffs?

The company fell into a Q3 FY2026 net loss, with an operating loss of 660 million yen and an ordinary loss of 480 million yen. To cut fixed costs and protect cash, management is seeking about 50 voluntary retirements and closing its manufacturing subsidiary, Chiyoda Shoes, with related special losses.

What is the status of the Chiyoda Shoes closure?

Operations at the 100% subsidiary are being halted. All 63 employees are set to retire, and Regal plans to recognize special losses related to the shutdown. The move targets recurring cost reductions to improve profitability after sustained weakness in leather business shoe demand.

How did Regal earnings Q3 2026 affect guidance?

The losses and planned restructuring led the company to cut full‑year net profit guidance. Near-term results will be pressured by one‑off charges from retirements and the subsidiary shutdown, with benefits expected to appear gradually from FY2027 as fixed costs decline.

What should investors in Japan watch now?

Focus on same-store sales, e‑commerce share, gross margin recovery, SG&A run‑rate post layoff actions, and inventory days. These indicators will show whether cost cuts and category mix shifts are improving normalized profitability and cash flow after the Regal Corporation layoffs and subsidiary closure.

Global Market Insights

Regal Corporation February 10: Q3 Loss Prompts Layoffs, Subsidiary Closure

ByHuzaifa Zahoor February 10, 2026February 10, 2026

Regal Corporation layoffs are in focus after the company swung to a Q3 FY2026 net loss and cut full‑year guidance. Management will seek about 50 voluntary retirements and halt operations at wholly owned Chiyoda Shoes, signaling deeper cost control. Weak demand for leather business shoes in Japan remains the core pressure. We review Regal earnings Q3 2026, quantify the losses reported, outline the Chiyoda Shoes closure, and highlight investor watchpoints for the next two quarters.