Tokyo-Based Mail Order Biz Operator Kefir Goes Bankrupt

September 3, 2018

Tokyo- Tokyo-based mail order business operator Kefir Inc., which garnered large amounts of investment from consumers under a so-called ownership program, filed for bankruptcy on Monday.

Tokyo District Court immediately approved the start of bankruptcy proceedings.

Kefir and three affiliates have a total of 33,700 creditors and 105.3 billion yen in debts, according to Kefir.

Kefir said it has reached a financial dead end because many contracts were canceled and terminated without renewal amid deteriorating trust in the company following payment delays stemming chiefly from computer system problems.

"We tried every measure but we could not find a way out," the company said in a statement.

On Friday, the Consumer Affairs Agency warned the public that it received many complaints about Kefir's failures to make payments.

According to sources including the agency, Kefir sought investment in such products as dried persimmons and yogurt under the ownership program in a minimum lot of 50,000 yen, concluding contracts with consumers to buy back the products with interest of some 10 pct in six months.

But payments delays started around November last year, the sources said.

A team of lawyers was set up to seek damages from the company. It is also considering filing a criminal complaint. Jiji Press