The encyclopedia · Strategy & Leadership · Strategic decision · 1951–2026
Fukunishi Meriyasu (福西メリヤス), Nara hosiery maker with ¥5.4B peak sales, bankrupt in 2026
Fukunishi made stockings for Japan's big brands since 1951 — cheap imports and falling demand shrank ¥5.4B sales into a ¥2B bankruptcy in 2026.
Fukunishi Meriyasu (福西メリヤス株式会社) · 2026-05-29
What happened
Fukunishi Meriyasu was a hosiery manufacturer in Yamato-Takada, Nara Prefecture, founded in 1951 and incorporated in 1961. It made stockings, tights and leggings, mainly as an OEM for major manufacturers, and sales exceeded ¥5.4 billion in the fiscal year ending May 1992.
The market then left it behind. Demand for its products fell, cheap overseas-made goods competed on price, sales declined, losses became a regular feature, and cash flow ran out.
Business stopped on 29 May 2026 and the company planned a self-bankruptcy filing. Combined liabilities of Fukunishi Meriyasu with its affiliates Fukunishi Shoji and Nihon Creviuo exceeded ¥2 billion.
Why it happened
- OEM for others, no name of its own: sewing stockings for major brands paid well in 1992, but left Fukunishi with no brand equity when the orders moved to cheaper factories.
- A commodity under price attack: hosiery became an import product, and a Japanese factory could not match overseas labor costs no matter how it cut.
- Losses became a habit: demand fell for decades, deficits recurred, and the company kept sewing until cash flow forced the stop in 2026.
The lesson
OEM made Fukunishi invisible: 75 years of sewing stockings for bigger brands left it no name of its own — when imports won the market, its customers simply switched.
Aftermath
Fukunishi Meriyasu stopped business on 29 May 2026 and planned a self-bankruptcy filing. Combined liabilities with affiliates Fukunishi Shoji and Nihon Creviuo exceeded ¥2 billion. The Yamato-Takada, Nara Prefecture company, founded 1951 and incorporated 1961, made stockings, tights and leggings mainly as OEM for major manufacturers, with sales above ¥5.4 billion in the fiscal year ending May 1992. Demand then weakened and cheap overseas products intensified competition, cutting sales, bringing recurring losses, and squeezing cash flow. Reported 2 June 2026.
Sources
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