Teikoku Databank announced on November 4th that Asahi Food ceased operations on October 31st and entrusted the post-closure procedures to a lawyer. It is expected to file for bankruptcy.
<Asahi Food Main Store in Utsunomiya City>
Asahi Food was founded in 1998 and incorporated in May 2006 as an operator of on-site shops and cafeterias at construction sites. It primarily operates shops and cafeterias at large-scale construction sites as well as within facilities such as logistics centers, and also ran a restaurant business until 2008.
The company expanded its business by operating shops and cafeterias for construction site workers and contractors, as there were virtually no competitors. In particular, it had close relationships with major general contractors, and was able to continuously secure orders in conjunction with the launch of new construction sites. Annual sales, which were approximately 1.005 billion yen in the fiscal year ending April 2020, grew to approximately 7.665 billion yen in the fiscal year ending April 2025.
However, as the business expanded, the demand for working capital became enormous, and much of it was covered by financial debt, forcing the company to constantly borrow and repay funds. Unprofitable stores were also observed, putting pressure on profits, so measures such as closing unprofitable stores and reducing the number of employees were taken, but the company's cash flow reached its limit.
The company's liabilities amounted to approximately 3.129 billion yen as of the end of April 2025.
