Megu: a Yamagata fashion chain opened six stores on debt and stopped trading

Megu was founded in Yamagata City in 2008 and incorporated in 2010, selling casual accessories aimed at young customers. It grew to about six stores across Tohoku and the northern Kanto region.

Sales peaked around ¥270 million in fiscal 2016. The later stores were opened on borrowed money, and profitability stayed thin as running costs and loan repayments mounted.

The company could not service its borrowings and cash flow tightened. It stopped trading on 16 February 2026 and began self-bankruptcy preparation, with debts of about ¥140 million.

Opened six stores on borrowed money, and the interest plus repayment burden exceeded the margins a small accessories chain earns, leaving about ¥140 million in debts.

Six stores were opened largely on borrowing, and the interest plus repayment burden exceeded the margins a small accessories chain earns.

Weak profitability never generated the cash to service the debt, and excess liabilities piled up as sales plateaued.

When cash flow finally tightened the company had no way to raise money, and it stopped trading rather than restructure.

Expanding on borrowed money works only while sales keep up. Megu opened six stores on debt, margins stayed thin, and the repayments outran a business that had already stopped growing.

Megu stopped trading on 16 February 2026 and entered self-bankruptcy preparation, with liabilities of about ¥140 million. The six stores across Tohoku and the northern Kanto region wound down, ending a fashion retailer that had grown too fast on borrowed money.