On Thursday, anime studio Manglobe filed for bankruptcy on Tuesday. The report confirms earlier speculations of Manglobe‘s insolvency.

Manglobe has been insolvent for quite some time, and was trying to find ways to settle its debt but was in a state where it was unable to continue its current business. Works on current projects had been proceeding up until the company filed for bankruptcy.

Shinichiro Kobayashi and Takashi Kochiyama founded Manglobe in 2002. The studio produced some well known series including Samurai Champloo, Ergo Proxy,  The World God Only Knows, Hayate the Combat Butler, and Samurai Flamenco

They have recently just finished the airing of Gangsta and was slated to release upcoming film Genocidal Organ in November.

Anime! Anime! Biz did not confirm if production on Genocidal Organ was finished or unfinished, but the site did state that, “The film is slated for a November 13 opening. It would be realistic to move the production to another company, but it would require adjusting the schedule.”

The report also predicts that Manglobe’s bankruptcy will likely cause a stir in the anime industry. Although the number of works produced domestically continue to increase, it has become more difficult to find a primary contractor for animation production. Production staff and animators are becoming limited, and production schedules can often collapse. There have been instances where actual production costs of a show exceeded its original budget.
Teikoku Databank reports that Manglobe’s revenue for calendar year 2013 was 1,017 million yen. However, that figure fell by more than one-half to 460 million yen in 2014 as a result of competition within the industry. Cash flow has remained tight this year, and business was not predicted to improve. The studio is estimated to have a debt of 350 million yen.

Source : Anime! Anime! Biz