Clear's ¥4.4B beauty equipment wholesale collapsed as rapid growth outpaced its cash flow

What happened

Why it happened

• Revenue grew to ¥4.358B in just four years — but the growth was funded by supplier credit that could not be sustained when sales stopped growing.
• Sales dropped sharply in FY July 2024 — when growth stopped, the cash flow covering supplier payments dried up immediately.
• Troubles with some suppliers emerged as the company grew — rapid expansion strained relationships with the partners it depended on for inventory.
• Attempts to secure loans from new financial institutions failed — without bank support, there was no bridge to restructure ¥3.53B in debt.
• Founded in 2019 with no long track record or financial reserves, Clear was a startup that grew too fast for its own funding — one bad year erased four years of growth.

Aftermath

Clear Co., Ltd. was ordered into bankruptcy proceedings by the Osaka District Court on June 11, 2024, with approximately ¥3.53 billion in liabilities. Established January 2019 and incorporated August 2020 in Osaka, the company wholesaled beauty equipment and cosmetics to beauty salons through trading companies. Revenue grew to approximately ¥4.358 billion (FY July 2023) but collapsed in FY July 2024 as rapid growth created unmet funding needs, supplier troubles emerged, and attempts to secure new financing failed.