Key Facts
• August 30, 2005: Chokei terminated all employees and ceased operations.
• The company has entrusted post-closure procedures to a lawyer and is preparing for bankruptcy filing.
• Total debt: Approximately 1.17 billion yen (as of the fiscal year ending August 2024).
• Founded in October 1972 as ‘Chokei Packaging Materials,’ incorporated in June 1975.
• Peak sales: Over 2.8 billion yen in August 1993, driven by diversification efforts.
• 2003: Merged with a group company to expand business scale.
• Decline in apple market and increased competition led to sales dropping below 1 billion yen.
• Rising material and energy costs made profitability unachievable, leading to financial collapse.
Summary
Chokei, a Hirosaki-based packaging material wholesaler, has ceased operations and is preparing for bankruptcy with debts totaling approximately 1.17 billion yen. Established in 1972, the company initially thrived by supplying apple packaging materials to agricultural cooperatives and exporters. However, declining apple market conditions and intensified competition led to prolonged financial struggles. Despite efforts to diversify into cushioning materials and vegetable packaging, as well as a 2003 merger to expand operations, Chokei’s sales plummeted, and profitability became unattainable due to rising material and energy costs. The company’s financial difficulties have now reached a breaking point, prompting this bankruptcy filing.
