The company has announced insolvency due to the growing deficit.
The Japanese animation company Studio KAI is facing insolvency due to growing losses. According to a report by the Japanese government’s Kanpō gazette from 13 April, the studio is ending the fiscal year 2025 with JP¥ 565 million (about US$3.5 million) net losses. Due to this, the company is entering a state of insolvency, meaning they can’t pay back their debts.
What is Studio KAI?
Studio KAI is a subsidiary of ADK Emotions and a member of the Japan Animation Association. It was formed in June 2019. In July 2019, Gonzo transferred some of its anime production, intellectual property, and rights management business to the new studio.
The first project of Studio KAI was Umamusume: Pretty Derby Season 2. Ever since the beginning, the company has been popular for delivering high qualitty animation to its fans.
Why is Studio KAI announcing insolvency?
Since 2019, Studio KAI has reported growing deficits at the end of every fiscal year. In the report for fiscal year 2019, the company revealed JP¥ 402 million (about US$2.5 million). In the fiscal year 2021, Studio KAI suffered JP¥ 165 million (about US$1 million) in losses.
Due to the increasing deficit, Studio KAI has been forced to announce insolvency. The studio is responsible for fan-favourite anime like Umamusume: Pretty Derby Season 2, Sentenced to Be a Hero, and the currently airing series Ramparts of Ice.
The news of insolvency has come as a shock to fans, who have always loved Studio KAI for providing high quality works. But now, the future of these projects hangs in the balance.