What happened in the 霧の下 bankruptcy?

On February 14, Sapporo’s soba brand 霧の下 and a related firm filed for bankruptcy with about JPY 290 million in liabilities. Reports cite sustained increases in input and utility costs. The filings highlight pressure on small F&B operators in Hokkaido and the importance of cash flow discipline.

Why are raw material costs hitting soba restaurants now?

Buckwheat and wheat-based ingredients, frying oil, dashi components, and seafood are tied to global prices and shipping. A weaker yen raises import bills, while utilities and wages add strain. Many small shops have limited hedging and pricing power, so cash buffers thin when costs rise.

How could this case affect suppliers and creditors?

Suppliers may face unpaid invoices, tighter cash, and a need to shorten payment terms or request deposits. Creditors may reassess exposure, collateral, and covenants. In the short run, trade credit could contract for similar clients in Hokkaido, raising working capital needs at neighboring restaurants.

What should investors in Japan watch after this case?

Track food service surveys, bankruptcy trends among small restaurants, and comments from wholesalers on collections. Monitor raw material costs and food inflation Japan. Prefer firms with procurement scale, pass-through contracts, and strong cash positions. Be cautious on unsecured supplier credit to concentrated restaurant clients.

Global Market Insights

February 14: ‘霧の下’ Bankruptcy, JPY 290m Debt Highlights Food Cost Squeeze

ByHuzaifa Zahoor February 14, 2026February 14, 2026

霧の下 bankruptcy on February 14 spotlights how raw material costs still squeeze Japan’s small restaurants. In Sapporo, the soba brand and a related firm sought court protection with about JPY 290 million in liabilities. The case adds to Japan restaurant bankruptcy concerns in 2026 as food inflation Japan persists and menu prices lag. We outline the cost drivers, the knock-on effects for Hokkaido suppliers and jobs, and the investor angles. We also share practical signals to track and simple portfolio steps as credit conditions and pricing power set the path ahead.