Studio KAI, the Japanese animation studio behind titles such as Sentenced To Be A Hero, Uma Musume Pretty Derby Season 2, Skeleton Knight in Another World, and Super Cub, has filed for insolvency. The announcement was made public on April 13, 2026, through the Japanese government’s official gazette, Kanpō.
According to the filing, Studio KAI ended its 2025 fiscal year with a net loss of 565 million yen (approximately US$3.5 million). This follows earlier reported losses, including 402 million yen in its first financial report (ending December 31, 2019) and 165 million yen in its second report for 2021.
Studio KAI was established in June 2019 as a subsidiary of ADK Emotions. Shortly after its founding, it absorbed a portion of GONZO’s anime production, intellectual property, and rights management business through an absorption-type company split in July 2019. The studio quickly built a portfolio of notable projects, contributing to both original anime and adaptations across a range of genres.
Some of its key works include:
- Uma Musume Pretty Derby Season 2
- Skeleton Knight in Another World
- Super Cub
- Sentenced to Be a Hero
- Mistress Kanan is Devilishly Easy
- The Ramparts of Ice
- 7SEEDS
- Cagaster of an Insect Cage
- Phantasy Star Online 2: Episode Oracle
Despite a solid lineup of productions, the studio has struggled financially since its inception, posting consistent losses that ultimately led to the current insolvency situation.
Entering a state of insolvency means the company is unable to pay its debts as they come due. This does not necessarily mean immediate closure, but it places the studio under legal and financial restructuring processes. The outcome could range from reorganization and continued operations under new management to a full winding down of the business, depending on creditor negotiations and court decisions.
The news is a significant blow to the anime industry, where smaller and mid-sized studios often operate with thin margins and face increasing production costs. Studio KAI’s situation highlights the financial pressures many animation houses continue to face, even when attached to popular franchises.
No official statement has been released by Studio KAI or its parent company ADK Emotions regarding the insolvency filing or future plans for ongoing and upcoming projects. Fans of the studio’s works will be watching closely to see how this development affects any announced or in-production titles.
The anime industry has seen several studios face financial difficulties in recent years, prompting broader discussions about sustainable business models, fair compensation for animators, and the need for stronger support structures within the sector.