Geneon parent Dentsu announced last Thursday that it would take a 4.7 billion Japanese yen charge for extraordinary losses related to its shutdown of Geneon (see 'Geneon Ankles American Anime Industry'); that's about $40.5 million at Monday's exchange rate. No details were provided, but it makes sense that such losses would be related to writedowns of inventory, returns, and other assets that will be liquidated for less than they're carried on the balance sheet; severance and other shutdown costs;  and the costs of rights advances that will now not be earned out. 


This $40 million loss brings into sharp relief the stakes in the recent collapse of Geneon's deal with ADV for distribution, which led to Dentsu's decision to exit the market (see 'ADV, Geneon Deal Collapses').


Dentsu became the sole owner of Geneon when its partner Mitsubishi pulled out (see 'Dentsu Is Sole Owner of Geneon').