Goyo Shoji's curtain fabric wholesale lost 95% as imports and yen killed textiles

What happened

Why it happened

• Revenue fell from ¥3.2B to ¥170M, a 94.7% decline — the domestic textile industry was hollowed out by cheap imports over three decades.
• Extreme yen depreciation caused a sharp rise in import costs for outsourced fabrics — the strategy of outsourcing to China and South Korea backfired when the yen collapsed.
• Consumption tax hikes under Abenomics reduced consumer spending on home furnishings — curtains are discretionary purchases consumers postpone when taxes rise.
• The company tried to adapt by designing in-house and outsourcing manufacturing — but this hybrid model still depended on overseas production that became unaffordable.
• Founded in 1962 with ¥48M capital, Goyo Shoji survived 62 years in a declining industry — but yen depreciation was a currency shock that decades of cost-cutting could not absorb.

Aftermath

Goyo Shoji Co., Ltd. suspended operations on July 16, 2024, and began preparing for self-bankruptcy proceedings with approximately ¥350 million in liabilities. Founded December 1962 in Gifu City with ¥48 million capital, the company wholesaled curtain fabrics and upholstery fabrics. Peak revenue of ¥3.2 billion fell to ¥170 million (FY December 2023), a 94.7% decline, as cheap imported curtains, Abenomics consumption tax hikes, and extreme yen depreciation destroyed the domestic textile industry.