The encyclopedia · Strategy & Leadership · Strategic decision · 2019–2025
century's ¥1B cosmetics collapse — a beauty brand that couldn't find its market
A Tokyo cosmetics company peaked at ¥800M then collapsed with ¥1B debt as COVID and failed expansion killed its salon channel.
century Co., Ltd. · 2025-11-19
What happened
century Co., Ltd. was a Tokyo-based cosmetics planning and sales company, originally operating under the trade name Sephine Co., Ltd. Founded in April 2019, the company developed and sold skincare and makeup products targeted at beauty salons and esthetic salons nationwide, building a distribution network across Japan.
The company grew rapidly in its early years, reaching peak revenue of approximately ¥800 million by the fiscal year ending April 2023. However, even at its peak the company was deeply unprofitable, recording a final loss of approximately ¥230 million for that same fiscal year.
Cash flow began deteriorating from June 2020 onward, and the COVID-19 pandemic caused orders from beauty salons to slump as salons closed or saw reduced foot traffic. Attempts to expand sales channels and find new routes to market did not succeed. By December 2024 the company sold its cosmetics business to IKI Co., Ltd., and on April 3, 2025 shareholders voted to dissolve. The Tokyo District Court ordered special liquidation on November 19, 2025 with approximately ¥1 billion in liabilities.
Why it happened
- Revenue of ¥800M against ¥230M in losses meant the company was never profitable at scale — growth masked a broken business model.
- The beauty salon channel was fragile — when salons closed during COVID, century's entire distribution network stopped ordering.
- Efforts to expand into new sales channels failed, leaving the company dependent on a single, declining customer base.
- Cash flow deterioration began as early as June 2020, but the company continued operating for five more years without fixing the core issue.
- Selling the cosmetics business and dissolving the company was a controlled exit, but ¥1B in debt meant creditors took the loss.
The lesson
A cosmetics brand that reaches ¥800M in revenue while losing ¥230M is not growing — it is bleeding; revenue hides the problem until cash runs out.
Aftermath
century Co., Ltd. (formerly Sephine Co., Ltd.) was ordered into special liquidation at Tokyo District Court on November 19, 2025 with approximately ¥1 billion in liabilities (case number Reiwa 7 (Hi) No. 2090). Founded April 2019 in Shinjuku, Tokyo, the company developed and sold skincare and makeup products to beauty salons nationwide. Peak ¥800M revenue (FY Apr 2023) masked a ¥230M loss. The cosmetics business was sold to IKI Co., Ltd. in December 2024; the company dissolved by shareholder vote on April 3, 2025.
Sources
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