Z-CRAFT operator Royal filed for civil rehabilitation — yen crushed ¥13.1B importer

Royal Co. was founded in 1972 as a pioneer in parallel imports of overseas sports and casual brands in Japan. Operating under the Z-CRAFT store name, it sold imported shoes, apparel, and casual goods through physical stores across Japan from Tohoku to Kyushu, as well as through e-commerce and wholesale channels. At its peak in 2021 it posted annual sales of over 13.1 billion yen and employed 178 people.

The business model depended on importing foreign-brand shoes and casual goods, which made it acutely vulnerable to currency swings. The sharp depreciation of the yen from 2022 onward steadily raised procurement costs. At the same time the company carried significant borrowings from aggressive capital investment, and rising interest rates increased the debt-service burden. By 2023 operating profit had shrunk to just 2.5 million yen. In fiscal 2024 sales fell to 11.4 billion yen and the company posted a loss of 576 million yen.

Royal filed for civil rehabilitation with the Tokyo District Court on May 27, 2025, with total liabilities of approximately 9.3 billion yen. The operator of online shoe retailer LOCONDO, Jade Group, stepped in as a sponsor for the rehabilitation. Z-CRAFT stores continued operating during the proceedings.