Komehyo subsidiary uncovers ¥120m misconduct by former employee

Komehyo Holdings disclosed that a former accounting manager at its consolidated subsidiary, Selby, engaged in misconduct during their employment. The individual illicitly transferred approximately ¥120 million from Selby's bank account to their personal account between November and December 2025. This fraudulent activity was uncovered following a report from the former employee and a subsequent internal investigation.

Komehyo has launched an internal investigation team, collaborating with external legal experts to confirm the facts, trace money transfers, and assess cash balances. The former employee has been dismissed and Komehyo plans to pursue the recovery of damages through legal action, including criminal charges.

The financial impact of this misconduct, estimated at ¥120 million, is expected to be reflected in Komehyo's consolidated earnings for the third quarter of the fiscal year ending March 2026. The company stated that the effect on its current fiscal year's consolidated performance is limited, and there will be no revisions to the consolidated earnings forecast announced on November 7, 2025. Komehyo is strengthening internal controls across its group to prevent similar incidents and restore stakeholder trust.