Kadoya Sesame Mills, founded in 1858, is preparing to go private through a tender offer. Rising costs, labour shortages and a shrinking domestic market are testing Japan’s long-established companies.
Founded in 1858, Kadoya Sesame Mills has endured wars and economic upheaval in Japan. Now the sesame-oil maker is preparing to leave the public market through a tender offer backed by private-equity firm Integral. CNBC linked the move to higher raw-material costs and heightened geopolitical risks.
Kadoya’s situation reflects broader challenges facing Japan’s long-established businesses. Teikoku Databank counted 112 bankruptcies among Japanese companies with more than a century of history in the first eight months of 2026, a record pace.
Family ownership, deep local roots and cautious management helped many such companies build long-term resilience, said Shigeto Nagai of Oxford Economics. But executives increasingly worry that they cannot sustain high profits over the long term. Strong balance sheets and accumulated capital may not be enough if established business models lose their returns.
Inflation and labour shortages have become more difficult to manage in the post-pandemic economy. Many companies still cannot fully pass higher costs on to customers, particularly smaller businesses focused on Japan, said Harumi Taguchi of S&P Global Market Intelligence. Price-related bankruptcies rose 23.8 percent to 556 in the first half of 2026, while bankruptcies linked to labour shortages increased 12.4 percent to 227, according to Teikoku Databank.
Smaller manufacturers are also under strain. Tofu maker Sube Shoten, founded in 1877, reportedly stopped operating in May and began preparing to file for bankruptcy as thin margins and rising input costs clouded its outlook. An ageing population, intensifying domestic competition and a shrinking home market add to the pressure on succession and overseas expansion. Nagai said there is no one-size-fits-all prescription.