Aruze files for Chapter II bankruptcy

Slot machine manufacturer Aruze Gaming has filed for Chapter II bankruptcy protection in the US.

The shock news followed just one day after the departure of its US subsidiary president, Robert Ziems.

The company filed a voluntary petition in the US Bankruptcy Court for Nevada last week and said in a news release that the filing was part of its efforts to restructure financially following “a recent garnishment judgement against Aruze resulting from a separate judgement against Aruze’s shareholder.”

Global CEO Yugo Kinoshita said in a statement: “This filing was a critical business strategy we were forced to make due to external factors outside our control.

“We fully understand the implications associated with this action, but we believe this is the best way for Aruze to maintain the overall health of our business.

“This restructuring has no reflection on the health of Aruze. We’re proud of the advances we have made to establish Aruze as a casino mainstay.

“We are highly confident this action will protect our brand, our legacy and our suite of games. As we progress through this process, we are assured that Aruze will emerge as an even stronger company.”

Kinoshita will take over the day-to-day running of the company, which will operate normally, from March 1, while the board seeks a replacement for Ziems.