OSAKA (TR) – Osaka City-based credit card payment processor Zentoshin Co. was forced into bankruptcy by the Osaka District Court on July 6, burdened by a staggering 125.9 billion yen in debt following a massive contract fraud scandal.
The collapse marks the largest bankruptcy of the fiscal year and threatens to drag countless local businesses down with it, reports Zakzak (July 7).
Zentoshin built its empire by providing early cash advances for credit card transactions to restaurants and other merchants. However, the company suffered a fatal blow during a 2024 compliance scandal when it was exposed for allowing businesses that failed credit screenings to sign contracts using fraudulent third-party names.
The resulting loss of public…