Leading Japanese retailer Daiei has announced the closure of seven supermarkets and four hypermarkets in a bid to control spiralling debts. Daiei is one of Japan's largest retailers and has been badly hit by the country's worst recession since the war. The announcement coincides with the release of figures recording a 5% year on year fall in sales in Japanese supermarkets in June. Meanwhile shares in Japanese food companies slumped further as the country's leading bakery Yamazaki said it had recalled thousands of products after customers complained of stomach pains. Operations at Morinaga, Japan's third largest dairy products supplier, have also been suspended over fears that goods may have been contaminated by disinfectant. The news came just weeks after Japan's largest dairy Snow Brand admitted responsibility for the worst outbreak of food poisoning for 30 years, leaving 15,000 people ill with sickness and diarrhoea. China has since banned all Snow Brand imports while 30 of its retail outlets have gone out of business after anxious customers shunned the Snow Brand label. A recent government commissioned survey revealed 10% of Japanese milk plants failed to meet acceptable hygiene standards. {{NEWS }}