Japanese animation production company Gainax filed for bankruptcy proceedings with the Tokyo District Court on May 29, and the application was accepted on June 7. Gainax was founded in 1984 and produced hit works such as "Royal Space Force: The Wings of Honnêamise", "Top wo Nerae!", and "Neon Genesis Evangelion". However, around 2012, it reportedly incurred massive debt due to "optimistic restaurant management", "establishment of a CG company without a plan", and "management and operational executives running the company as if it were their own".

In 2018, shares were transferred to an individual with no experience in video production, and in 2019, that individual became the CEO and was subsequently arrested for a sex crime against a minor. This completely crippled Gainax's operational capabilities. Subsequently, "Color", the copyright holder and creditor of the "Evangelion" series, stepped in to provide support, and worked with the new management team to assess the situation. As a result, they discovered "massive loans from financial institutions", "failure to fulfill obligations to various companies in the animation industry", and "sale/transfer of intellectual property and works materials to companies or individuals owned by the aforementioned management and operational executives without authorization from the rightful owners". Gainax worked to normalize this situation and continue its production and operations, but was unable to address "the large amount of debt accumulated under the previous regime", in addition to "the fact that many former executives remain shareholders".

Ultimately, in May of this year, Gainax was sued by a debt collection company and decided it could no longer continue its business and filed for bankruptcy. Gainax stated, "We are deeply sorry to our creditors, the various companies that cooperated with us, and our fans for not being able to achieve our goals and having to choose bankruptcy." Color also released a statement on its official website regarding Gainax's bankruptcy. Color stated, "We would like to express our sincere gratitude to those who have cooperated in the arrangement and transfer, prioritizing the creators and creators with regard to intellectual property and future operations." They added, "We regret that an animation studio with a history of almost 40 years has come to this end."

Gainax's bankruptcy has sent shockwaves through the Japanese animation industry, with "privatization of the company" cited as a major contributing factor. The fate of the numerous works left behind by Gainax remains to be seen.