Toshiba is in danger of going bankrupt. This unfortunate turn of events is slowly becoming more and more evident after a series of announcements from the company's bigwigs.
Toshiba is in trouble after its liaison with the nuclear industry put it at a major disadvantage. Speculations of the company's possible troubles first surfaced after it failed to release its third quarter results in time. When the company eventually revealed its figures, it was discovered that it lost around $6.3 billion due in large part to its investments on the proposed Moorside nuclear power station in Cumbria, England.
As a result of the disastrous investment and the billions of dollars that were written off, Shigenori Shiga resigned as the chairman of the board. He will, however, stay on as an executive of the Japanese company. The Guardian reported that the company's shares swiftly fell by 8 percent in Tokyo after Shiga's resignation from the board.
But even before that, there were signs that the Japanese conglomerate was going through a rough patch. A couple of weeks ago, the company unveiled its plans to sell most of the stakes in its memory chip and SSD businesses. The sale is supposed to make up for the company's losses from the nuclear deals. In June of 2016, Toshiba sold 80 percent of its stake in Toshiba Lifestyle. The company's shares in the domestic appliance business were acquired for $450 million by Midea.
According to PC World, Toshiba will continue to produce laptop computers despite its ongoing troubles and the possibility of bankruptcy. As a matter of fact, it recently showed off its new convertible laptop, the Portege X20W, at the CES 2017. The company, which started off manufacturing electronic products such as televisions and other household appliances, grew to include other industries in its fold. Its latest foray into the world of nuclear energy, however, proved to be its undoing.