Beauty Three's ¥8B collapse — 63 hair removal salons killed by COVID and telework

Beauty Three Co., Ltd. was a Tokyo-based operator of women's hair removal salons under the brand 'C3' (シースリー), founded in August 2007 with ¥3 million in capital. The company expanded rapidly, reaching 63 stores nationwide and annual revenue of approximately ¥2.2 billion by the fiscal year ending July 2019.

The COVID-19 pandemic devastated the business. Store closures and reduced foot traffic during the pandemic coincided with a structural shift to telework, which meant fewer commuting women visiting salon locations. The company invested heavily in TV commercials to attract customers back, but the advertising spending failed to reverse the decline. The salon business, which relies on regular in-person appointments, could not recover as work-from-home patterns persisted.

With approximately ¥8 billion in debt against peak revenue of ¥2.2 billion, the company was ordered into bankruptcy on September 25, 2023 at Tokyo District Court. Some stores were transferred to FAVORIX BEAUTY Co., Ltd., but stores in regions where the successor had no presence were closed, leaving prepaid membership and coupon holders without recourse.