Brother Industries sells karaoke business to Koshidaka Holdings

Brother Industries, through its wholly-owned subsidiary XING INC., has agreed to transfer its entire karaoke club business, operated by STANDARD Corp., to KOSHIDAKA SP Co., Ltd. The absorption-type company split, effective November 1, 2025, will see STANDARD Corp. receive 3.5 billion yen from KOSHIDAKA SP for the businesses, which include karaoke boxes, multi-purpose cafés, and food and beverage outlets.

This divestiture aligns with the Brother Group's "CS B2027" mid-term strategy, aimed at enhancing profit-generating capabilities and reforming its Network & Contents business's profitability. The company believes Koshidaka Holdings Group's management will improve customer satisfaction and foster future business growth in the karaoke sector.

STANDARD Corp. reported net sales of 8.693 billion yen, operating profit of 42 million yen, and ordinary profit of (51 million) yen for the fiscal year ended March 2025. The company’s total assets to be split are 3.042 billion yen, with total liabilities of 3.291 billion yen. Brother Industries anticipates only a minor impact on its consolidated business results for the current fiscal year.