Work clothing producer Yagi Corp is set to delist and undergo a management buy-out led by chairman Takao Yagi in a bid to cope with Japan's shrinking work uniform market, Dow Jones reported.

Yagi Agency, a company owned by the Yagi family, is aiming to buy at least 4.18m Yagi Corp shares by 22 August, at an offer price of JPY659 (US$5.60) each - valuing the company at just over JPY8bn, the report said.

The offer is a 54% premium over the one-month average of the company's shares. If successful, the buy-out would raise Yagi Agency's stake in the company to 66.7%, or 7.63m shares.

Yagi Corp would then aim to "drastically reform" its operations, strengthening its financial standing amid a weakening work uniform market.