'Gainax' Animation Studio Files for Bankruptcy, Massive Debt Due to Management's 'Privatization'...

Japanese animation production company 'Gainax' filed for bankruptcy proceedings with the Tokyo District Court on May 29th, and the court accepted the application on June 7th, the company announced. Founded in 1984, Gainax produced hit works such as 'Royal Space Force: The Wings of Honneamise', 'Top o Nerae!', and 'Neon Genesis Evangelion'. However, since around 2012, the company reportedly incurred massive debts due to factors such as 'optimistically pursuing restaurant management', 'establishing a CG company without a proper plan', and 'management and operating executives operating the company as if it were their own personal property'.

In 2018, shares were transferred to an individual with no experience in video production, and in 2019, that individual became the CEO and was arrested shortly after for committing a sex crime against a minor. As a result, Gainax completely lost its operational capabilities. Subsequently, 'Khara' (カラー), the copyright holder of the 'Evangelion' series and a creditor, stepped in to provide support and, together with newly appointed directors, began investigating the situation. As a result of the investigation, various issues were discovered, including 'massive loans from financial institutions', 'failure to fulfill obligations to various companies in the animation industry', and 'the sale/transfer of intellectual property and production materials to companies or individuals associated with the aforementioned management and operating executives without proper authorization from the rightful owners.' Gainax worked to normalize the situation and ensure the continuation of production and operations in the future, including confirming and clarifying rights, but despite these efforts, they were unable to resolve the large debts accumulated under the previous regime, especially with 'many former executives remaining as shareholders'.

Ultimately, Gainax was sued by a debt collection agency in May of this year, and deemed unable to continue business any longer, leading to the decision to file for bankruptcy. Gainax stated, "We deeply regret having to choose bankruptcy without fully achieving our goals, and we sincerely apologize to our creditors, the various companies that have cooperated with us, and our fans." Khara also released a statement on its official website regarding Gainax's bankruptcy. Khara stated, "We sincerely appreciate your cooperation in matters concerning intellectual property and future operations, especially prioritizing authors and creators in the organization and transfer of rights, etc." and added, "We regret that an animation studio with nearly 40 years of history has come to this end."

Gainax's bankruptcy has sent shockwaves through the Japanese animation industry, with 'privatization of the company' and other managerial shortcomings being cited as the primary causes. The future management of the numerous works left behind by Gainax is being closely watched.