Japanese credit card payment processing service provider Zentoshin has received approval from Osaka District Court to start voluntary bankruptcy procedures, according to research firm Teikoku Databank.
The company, based in the city of Osaka, had liabilities of about ?125,929 million, making the case Japan¡¯s biggest bankruptcy of the year, Teikoku Databank said Monday.
Set up in September 2006, Zentoshin provided a service that paid sales proceeds to credit card merchants before they received payments from credit card companies. It also contracted to sign up new credit card merchants.
Its revenue shrank amid the COVID-19 pandemic. A Zentoshin employee was arrested in 2024 on suspicion of signing a merchant contract with a dining business using another person¡¯s name, and the company was also referred to prosecutors over the incident.
Zentoshin decided to cease its operations after concerns surfaced about its creditworthiness.
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