From this article about how to enter Japan market other than the organic growth, we will publish the latest case of bankruptcy in Japan and you may consider buying it.

 

Reviving a struggling company in Japan, especially one that is on the brink of bankruptcy, involves a mix of challenges and opportunities. Let us break down what it means to take over and breathe new life into a business that is facing financial ruin. We explain pros and cons. The below is just general information and you need to consult the experts on these topics. And we work closely with the experts so we can help.

 

Below this section, we have updated several recent bankrupt cases which you may take over. Check the list out! <2024 April, updated>

 

Pros:

1. Less Debt, More Tax Benefits: When you buy a bankrupt company, you are often getting rid of a lot of its debt. Plus, there are tax perks that can help you save money in the long run.

2. No More Surprise Bills: You will not have to deal with unexpected debts cropping up once you have taken over the company. This gives you a clearer path to turn things around.

3. Changing How Things Work: Buying a struggling company can also mean changing how employees think and work. This can lead to big changes that make the company stronger in the long run.

 

Cons:

1. It is Not Simple: Buying a company that is in financial trouble is not easy. There are lots of details to consider, and you need to be careful about how you do things.

2. Special Rules Apply: When a company is bankrupt, there are special rules you have to follow. Making sure you understand these rules is crucial to making the transition smooth.

 

How Sponsor Companies Help:

Sometimes, another company steps in to help buy and revive a struggling business. This can speed up the process of getting the company back on its feet because the sponsor company usually has more money and experience.

 

Why It is Good for Buyers:

1. Faster Growth: For the buyer, taking over a struggling company can mean growing their own business faster than if they started from scratch.

2. Saving Jobs: Buying a bankrupt company can also mean saving jobs. Instead of letting the business shut down, you can keep it running and keep people employed.

 

Dealing with Bankruptcy:

Even after the pandemic ends, many businesses will still be struggling. But just declaring bankruptcy is not always the best option. There are ways to deal with debts while keeping the business going.

 

Using Civil Rehabilitation Laws:

One way to keep a struggling business afloat is by using civil rehabilitation laws. These laws help restructure debts without shutting down the business. It is a way to keep things running while also dealing with financial problems.

 

In short, buying and rebuilding a bankrupt company in Japan is like walking a tightrope. It is full of risks, but it also offers the chance to turn things around and build something stronger. With careful planning and the right support, it is possible to breathe new life into a struggling business and set it on a path to success.

 

The information source from the courts in Japan explains bankruptcy and civil rehabilitation processes as below: 

 

(1) Bankruptcy Process:

Bankruptcy is when a court decides to start a process to handle a company or person's debts. They appoint someone called a bankruptcy administrator to sell off the debtor's stuff and give the money to the people they owe. Usually, all the debtor's stuff at the start of the bankruptcy process is sold for money and handed out to the people they owe. Sometimes, if the debtor does not have much stuff, they skip appointing a bankruptcy administrator and just end the bankruptcy process.

When bankruptcy starts, debts do not automatically go away. Debtors have to ask separately for permission to have their debts forgiven, and they might not get it if they have done things like spending money recklessly or committing fraud.

 

For People Considering Bankruptcy:

(2) Civil Rehabilitation Process:

Civil rehabilitation has two main types: one for companies and one for individual people. The version for individuals is simpler and cheaper.

 

A. Regular Civil Rehabilitation:

This is for businesses or individuals in financial trouble. They come up with a plan to pay back their debts, and if most of the people they owe and the court agree, they can get rid of the rest of their debts. During this process, they have to share information about their money and might have someone watching over them. If they do not stick to the plan, their stuff might be taken away to pay back what they owe.

 

B. Individual Debtors' Civil Rehabilitation:

This is a simplified version for individuals who either earn money regularly and owe less than 50 million yen in total or can easily prove how much they earn. If their plan to repay their debts is approved and they stick to it, they can get rid of the rest of what they owe. But their repayment plan usually lasts for three years, and they have to pay back more than they would if they went bankrupt. Also, the amount they have to pay back depends on how much they owe. For example, if they owe less than 1 million yen, they have to pay back everything they owe. If it is between 1 million and 5 million yen, they have to pay back at least 1 million yen, and so on. If they are earning money regularly, they have to pay back more than they would be left with after paying for their basic needs for two years.

 

For details, please ask the relevant experts.

Source: Supreme court of Japan

Do you want to buy and rebuild a bankrupt Japanese companies? Contact us from the below and give us the details as much as you can disclose.

 

Sometimes many companies want to take over a bankrupt company. Like many M&A cases, the time is the essence.

 

If you feel a bit interested, you must act quickly.

 

We can give you more details (name of the company, contact details) of the case for 400USD per case. And if needed, you can work with our experts to pursue this case.

 

Updated 2024 April

[Case 1] Over 7 billion yen revenue company producing stockings, tights and high socks

 Business: Engaged in the production of various legwear items including stockings, tights, and high socks.

Revenue: Peaked at approximately 7.7 billion yen in the past, but has hovered around the 1 billion yen mark since the 2000s.

Overview: The company, known for its production of legwear items, once thrived on orders from major textile traders. However, challenges arose with the influx of cheaper overseas products and a societal shift towards more casual attire, reducing demand for traditional pantyhose. The onset of the COVID-19 pandemic exacerbated the situation as remote work and decreased outings led to a significant decrease in the use of stockings. This decline in demand resulted in a financial downturn for the company, leading to debt accumulation and subsequent financial strain.

 

Are you in stockings, tights, and high socks manufacturing or trading business? Maybe you can buy the business to expand?

 

[Case 2] Japanese inn in Hyogo

Business: Hospitality (Inns)

Revenue: Used to make about 800 million yen at its busiest time

Debts: Owed around 1 billion yen

Overview: This company runs a restaurant and a hotel. They served fresh seafood dishes and attracted tourists, but COVID-19 stopped events and hurt their income. They struggled to manage their money and had to stop operating by January this year.

 

Do you want to run hospitality business in Japan? Maybe you can buy the business to expand?

 

[Case 3] Robotic company in Tokyo

Business: Conceptual and design services for robot systems

Debts: Approximately 19 billion yen

Overview: The company was in a bad shape already in the past. In 2022, the company already once filed for civil rehabilitation with liabilities of approximately 60 billion yen.

The company served as a system design firm responsible for conceptualizing and designing robot systems for companies planning their implementation. Orders were received from major electrical and machinery manufacturers. While the manufacturing industry had been generating unprecedented profits under the Abe administration, it was preoccupied with shareholder return policies and did not actively invest in productivity improvement equipment. Amidst declining sales and reduced equipment investments due to the recent COVID-19 situation, the company's performance deteriorated further.

 

Do you want to run a robotic business in Japan? Maybe you can buy the business to expand?

 

[Case 4] Kimono rental shop in Kyoto

Business: Rental of Kimonos and Traditional Costumes 

Debts: Approximately 550 million yen for the fiscal year ending in December 2019

Liabilities: Approximately 200 million yen

Details: The company specializes in renting out traditional Japanese clothing, including kimonos, primarily catering to tourists and for ceremonies like Shichi-Go-San (a celebration for children of specific ages). However, due to the recent COVID-19 situation, the number of tourists—both international and domestic—plummeted, and the outlook for the future became uncertain. As a result, the company suspended its operations by July of last year.

 

[Case 5] Kimono rental shop and photo studio in Hyogo Prefecture

Business: Sale and Rental of Kimonos, Operation of a Photo Studio 

Revenue: Peak period revenue was around 200 million yen

Revenue for 2021: Approximately 50 million yen

Debts: Approximately 200 million yen

Details: The company operates a kimono shop. With a prolonged period of economic downturn and decreasing interest in traditional clothing (known as "kimono-dokoro"), the company launched a rental division specializing in kimono for ceremonies and memorial occasions. Additionally, the company ventured into running a photo studio to navigate the challenging business landscape. However, amid the recent COVID-19 situation, bridal demand for sales and rentals sharply declined, leading to an uncertain future for the company and the current circumstances.

 

Do you want to run a kimono and tourist business in Japan? Maybe you can buy the business to expand?

 

Are you a media? You want to interview business persons? famous CEOs in Japan? We have extensive experience and contacts in Japan.

 

Do you want to carry out a TV shooting, music video, photo shooting for fashion in Japan?

 

We worked with major TV broadcasters around the world and online media to carry out their task in Japan. We make planning, arrangement with the venues, also hire local professional crew (videographer, photographer, editor, makeup artist, stylist, model, interpreter etc. ) for the project.

 

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