LinkUp, a Japan-based company known for operating the VTuber agency Vivid V, announced via an official notice and apology dated November 5 that it has begun bankruptcy proceedings following the misappropriation of funds by former CEO Shotaro Nishiguchi. While Nishiguchi has publicly apologized for his crimes, LinkUp’s representatives have determined that the resulting damages are too severe for the company to continue operations.
Nishiguchi reveals the extent of the misappropriation of company funds in his apology, commenting that he “repeatedly mixed personal and company matters by using company funds for non-business expenses, severely straining the company’s cash flow.” He admits to making poor management choices and having a lack of awareness as LinkUp’s CEO. During a staff shortage, he approached creators affiliated with Vivid V offering to hire them as employees, without the company’s knowledge. While Nishiguchi decided to cancel the contracts before they were signed, he failed to explain what happened to the creators or apologize, leading to strained relationships.
Another factor that contributed to LinkUp’s financial strain is Nishiguchi’s decision to push through with the Vivid V first anniversary festival despite a poorly planned budget. On top of placing excessive orders, the company accepted post-event shipments and orders from fans without establishing proper procedures. This led to the failure of shipments and numerous requests for refunds.
Prior to the announcement of its bankruptcy, LinkUp (more specifically Vivid V) has been on a bit of an apology run. Back in August, Nishiguchi apologized to fans for shipping and refund delays for merchandise purchased at Vivid V live events. He would issue another formal apology in October, this time due to a fully-crowdfunded project being cancelled. Following Nishiguchi’s latest public apology, it was revealed that LinkUp also delayed payments to some of its business partners.
LinkUp and Nishiguchi are currently in talks with third parties (including tax accountants and lawyers) to determine the amount of the misappropriated funds – which the CEO intends to personally take responsibility for. Future details regarding the company’s bankruptcy procedures will also be announced.
All associated VTubers and other talents will have their management contracts terminated. Fan club services have been cancelled, and merchandise orders will be processed or refunded accordingly.
