Hello Kitty Nakajima Corporation Shutters US Wholly Owned Subsidiaries to Avoid Paying US$1.2M Judgment in favor of SYSCOM(USA)INC.

SYSCOM(USA)INC. has obtained a judgment in the United States District Court Central District of California for breach of contract against Nakajima USA, Inc., Neko World, Inc. and Torrance Trading, Inc. – three wholly-owned subsidiaries of NAKAJIMA Corp. of Japan. Prior to entry of the over US$1.2M judgment in February 18, 2020, Shinji Nakajima, CEO of Nakajima Japan and its wholly-owned US subsidiaries, admitted that Nakajima USA – the original holder of a license from Sanrio Corporation to sell “Hello Kitty” related products in the US – was unable to pay its US creditors and ceased operating in 2014. Mr. Nakajima also admitted that Nakajima Japan formed Neko World and Torrance Trading in 2014 to take over the sales of “Hello Kitty” and “Peanuts” related products in the US from Nakajima USA in order to prevent US creditors from collecting money owed to them from the sale of “Hello Kitty” and “Peanuts” related products in the US.

Nakajima Japan has continued its unsavory business practices by obtaining the license to sell “Hello Kitty” products from Sanrio and shuttering the US operations of Neko World and Torrance Trading. By doing so, Nakajima Japan has left Neko World and Torrance Trading with no assets, no ability to make sales and no means to pay SYSCOM or any other US creditor.

Through its Tokyo-based lawyers, Nakajima Japan has disavowed any and all responsibility for debts owed to US creditors, including SYSCOM, by its US wholly owned subsidiaries. Through its US-based lawyers, Nakajima Japan has made it clear that its wholly owned subsidiaries will not pay Syscom or any other US creditor.

The border-line illegal business practices of Nakajima Japan have no place in the legitimate business world. Those who do business with Nakajima Japan should consider its treatment of US creditors when evaluating their continued business relationship with Nakajima Japan and its wholly owned subsidiaries.

Court Judgment Document PDF: