J-Pop Star Retires As Fuji TV Probes Harassment Allegations

(MENAFN- Live Mint) (Bloomberg) -- Masahiro Nakai, a former J-pop star turned TV host, said he was retiring following sexual harassment allegations and broadcaster Fuji TV announced a fresh probe into the matter, which has spooked advertisers.

The TV company has denied tabloid reports that its employees were involved in setting up a party at which the incident took place. But its response to the scandal and a call for more transparency have prompted big corporations to suspend advertising, hitting parent Fuji Media Holdings Inc's shares.

“I am sincerely sorry for causing so much trouble and losses to so many people,” Nakai said in a statement on his company's website. He apologized to the victim and signed off with:“Thank you for these 37 years. Sayonara.”

The highest-profile criticism has come from James Rosenwald-backed activist investor Rising Sun Management Ltd., which owns more than 7% of Fuji Media and urged it to set up a third-party inquiry. Fuji TV said Thursday it would set up an independent panel which will submit its findings by the end of March.

Sponsors including Toyota Motor Corp., McDonald's Holding Co. Japan Ltd., Nissan Motor Co. and Seven & i Holdings Co. have suspended advertisements at Fuji Media Holdings Inc.'s TV station, and the broadcaster said ad revenue loss may hurt its bottom line. The uproar has also created an opening for activist investors to try to breach one of Japan's biggest broadcasting networks.

Shares of Fuji Media closed down almost 8% Thursday, breaking a four-day streak of rises as trading volumes jumped. The spread on its corporate bonds widened to a record high on Thursday.

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