Japan cake maker mascot loses smile over scandal

TOKYO, Jan 16 (Reuters) Poor ''Peko-chan''. That's what customers and executives at Japan's Fujiya Co Ltd. are saying after the confectioner confessed to selling cream puffs and other pastries made from stale ingredients.

''Peko-chan'', a round-eyed mannequin with a lip-licking grin, has been hawking sweets for the Japanese cake maker since the firm adopted the eternal six-year-old girl as its mascot after the Second World War.

'''Peko-chan' is a mascot who has been loved by consumers for more than 50 years. In that sense, she is our biggest asset and has played a role of bringing happiness to consumers,'' Fujiya President Rintaro Fujii told a news conference this week at which he said he would resign over the scandal.

''That mascot has been hurt by Fujiya,'' Fujii added.

''Now we want to try to build a Fujiya that can support 'Peko-chan' who is standing firm.'' Last week, a message bearing an apology from Fujii was posted next to a ''Peko-chan'' doll at the firm's store in Tokyo's downtown Ginza shopping district.

For now, most ''Peko-chan'' dolls are secluded inside the 751 retail stores that Fujiya -- founded in 1910 to sell Western-style cakes to foreigners -- has closed due to the scandal, a company spokesman said. Its restaurants remain open.

Some loyal customers have called to offer their support, the spokesman added.

Three years ago, ''Peko-chan'' grabbed a different sort of headline when the dolls were targeted by kidnappers apparently hoping to sell them on Internet auctions.

Reuters BDP GC1255