Japan's third-largest phone maker left ¥143B in debt five years after its spin-off

In January 2018, Fujitsu transferred its mobile terminal business to investment fund Polaris Capital Group. Three new companies were formed: FCNT, which owned the arrows and Raku Raku smartphone brands; Japan E.M. Solutions, which handled manufacturing; and Reinowa Holdings, the parent. FCNT inherited Fujitsu's position as Japan's third-largest domestic smartphone maker by shipments, with a loyal base among senior users who valued the Raku Raku line's large buttons and simplified interface.

The standalone company faced stagnant sales in a market dominated by Apple and carrier-subsidised iPhones. The depreciation of the yen raised component costs, and the global semiconductor shortage of 2021–22 squeezed margins further. Without Fujitsu's balance sheet behind it, FCNT could not absorb the shocks. Sales did not grow enough to cover the cost structure of a domestic manufacturer competing against global-scale rivals.

In May 2023, all three companies filed for bankruptcy protection under Japan's civil rehabilitation law at the Tokyo District Court, leaving total debts of ¥143.1 billion ($1 billion) according to Teikoku Databank. On 29 September 2023, Lenovo completed an asset purchase of FCNT, reviving the arrows and Raku Raku brands under Lenovo's mobile business group. The brands survived; the company that owned them did not.