Nogami Holdings, the Osaka company behind the luxury shokupan chain Nogami, considered legal proceedings toward bankruptcy this summer, Weekly Bunshun reported.
Founded in 2013, Nogami grew mainly through franchise stores and became the chain credited with setting off the premium white-bread boom. It was featured in the media as a bakery that sold 50,000 loaves a day.
The business later faltered, with the coronavirus pandemic adding to its troubles. Its founders have left the company, and the store count has fallen from more than 200 at its peak to around 60.
Fund gives up on turnaround
"This summer they were preparing the paperwork for bankruptcy proceedings. There was no prospect of repaying the large borrowings, and the fund gave up on rebuilding the business," a source told Weekly Bunshun.
Nogami and its major shareholder, Création Capital, did not respond to requests for comment by the deadline, the magazine reported.
Weekly Bunshun's electronic edition carries further detail on the decline of the past three years and on the specific legal steps that were under consideration.