Photo/Illutration A Bigmotor outlet in Tokyo on Aug. 11 (Shinya Wake)

Major trading company Itochu Corp. is kicking the tires on acquiring scandal-ridden Bigmotor Co., along with possibly helping sponsor its corporate reconstruction.

Itochu inked a basic agreement with Bigmotor to first proceed with evaluating the assets of the major used car dealer exclusively with an investment fund, the company announced on Nov. 17.

On the condition that the founder’s family is not involved in its management, Itochu said that it “will examine the possibility of reconstructing the business operated by Bigmotor.”

A final decision will be made by around spring next year.

Bigmotor’s performance has continued to deteriorate due to problems with inappropriate vehicle repairs and improper vehicle inspections, as well as fraudulent insurance claims.

The used car chain has been seeking companies that can provide support for a turnaround.

Itochu believes that acquiring Bigmotor could create synergies with its group’s existing businesses, including automobile sales, leasing, car rentals and insurance sales.

In addition, Itochu subsidiary Itochu Enex Co., an energy trading company, and investment fund J-Will Partners, which has a proven track record for corporate reconstruction, all based in Tokyo, are also considering offering support.

The investment fund will play a central role in the corporate reconstruction, and Itochu will work out details such as the future business development of Bigmotor.

Itochu will consider how much to offer for Bigmotor's assets, while carefully ensuring that its own brand is not tarnished.

Bigmotor is wholly owned by an asset management company belonging to the family of the company’s founder, Hiroyuki Kaneshige, who is a former president.

Itochu said it will remove the influence of the founding family from the company's management.