Hair Salon Bankruptcies Hit Record High of 235. The Shortening Lifespan of the Beauty Industry and the Current State of Fixture Transfers [2025 Edition]

In 2025, the number of hair salon bankruptcies reached a record high. As more salon owners consider closing their businesses, changes are also occurring in the market for fixture transfers.

To conclude, hair salon bankruptcies in 2025 reached 235 for the full year, marking a record high for the second consecutive year. Nearly half of these bankruptcies involved small-scale salons established less than 10 years ago, indicating a trend toward a "shortening lifespan" in the industry.

This article explains the trends in hair salon closures in 2025 and the current state of the fixture transfer market.

Hair Salon Bankruptcies in 2025 Reach Record High of 235

According to a survey by Teikoku Databank, there were 235 hair salon bankruptcies (involving liabilities of 10 million yen or more and legal liquidation) in 2025, exceeding the previous year's 215.This is a serious situation, marking a record high for the second consecutive year.

Over 90% of the bankrupt salons were small-scale businesses with capital of less than 10 million yen, as the expansion of large chains and low-cost haircut specialty stores, along with intensifying competition, continues to weed out operators unable to keep up with the management demands.

Background Behind the Increase in Bankruptcies

The factors behind the increase in bankruptcies in the beauty industry are complex.

• Intensifying competition with large chains and low-cost haircut specialty stores

• Soaring prices for beauty supplies (shampoo, color agents)

• Rising electricity costs and rent

• Shortage of hairstylists and the shift toward freelancing

• Consumer tendency to save money due to high prices

Of particular note is that bankruptcies due to "labor shortages" reached 11 cases, the highest since 2013. With the shift of hairstylists to freelance work and the spread of shared salons, it has become difficult to secure skilled stylists.

The "Shortening Lifespan" of Hair Salons is Progressing

The most shocking aspect of the 2025 bankruptcy data is that bankruptcies of businesses established less than 10 years ago accounted for 49.0% of the total. This is the highest figure since 2008, when the level of over 100 cases per year became the norm.

The average period from establishment to bankruptcy was 13.0 years, lower than the previous year (14.1 years) and the shortest since the COVID-19 pandemic.

Why is the lifespan shortening?

1. The hurdles for new business openings have lowered

The spread of shared salons and outsourcing models has lowered the hurdles for independent business openings. On the other hand, the increase in the number of openings means intensified competition, leading to more cases where businesses are weeded out before their management foundations are solidified.

2. The Independence-Oriented Mindset of Hair Stylists

The number of hair stylists working as freelancers is increasing, making it difficult for salons to retain employed stylists. Cases where salons close down because they cannot secure staff and maintain service quality are also becoming prominent.

3. Difficulty in Implementing Price Increases

Amid rising costs due to inflation, the structure makes it difficult to implement price increases due to price competition with rivals. It is estimated that about 30% of beauty salons are operating in the red as profit margins deteriorate.

Bankruptcy vs. 'Planned Business Closure'

Here, it is important to clarify the difference between 'bankruptcy' and 'business closure'.

Bankruptcy: Legal liquidation due to business failure (bankruptcy, civil rehabilitation, etc.)
Business Closure: Planned termination of business based on the owner's decision

The 235 cases reported by Teikoku Databank refer to 'bankruptcies.'If planned business closures are included, the actual number of closures is estimated to be several times higher. It is speculated that this is the case.

Business closures due to 'marriage,' 'childbirth,' and 'lifestyle changes' are also increasing, and the total number of beauty salon closures is expanding at an unprecedented pace.

Three Problems Faced During Bankruptcy or Business Closure

1. Burden of Removal Costs

Removing equipment from a beauty salon, such as shampoo stations, water heaters, and styling stations, requires specialized contractors, and even for a salon of about 15 tsubo (approx. 50 sqm), removal costs range from 500,000 to 1.5 million yen. This becomes a significant burden when cash flow is tight just before bankruptcy.

2. Closing Down Without Utilizing the Value of Fixtures

There are cases where owners, feeling they 'just want to be done with it,' dispose of fixtures without checking their value. This creates a structure where equipment worth millions of yen is discarded while paying for removal costs.

3. Missing Out on Demand for Existing Salon Spaces (Inuki)

In the beauty industry, there are always hair stylists aiming to open new businesses, and demand for 'inuki' (existing salon space) properties is stable. Giving up and discarding fixtures because the location is 'on the second floor' or 'too small' without attempting a fixture transfer results in a significant economic loss.

The Market for Existing Beauty Salon Spaces (Inuki) is Booming

While bankruptcies and business closures are increasing,the need for 'inuki' properties is actually rising for those looking to open new businesses in the beauty industry.

Reasons Why Inuki Properties are Preferred

1. Significant Reduction in Initial Investment

Installing new shampoo units costs 300,000 to 500,000 yen each, and a boiler costs 500,000 to 800,000 yen. Interior construction from a skeleton state can total 5 to 10 million yen. With a transfer of existing fixtures (inuki), you can open a business with the fixture transfer fee plus simple renovations, keeping initial investment to less than half.

2. Speed to Opening

While new construction takes 3 to 4 months to prepare for opening, an inuki property can be ready in under a month. This is a major appeal for independent stylists who want to start generating revenue quickly.

3. Compatibility with Freelance Stylists

When stylists who have gained experience in shared salons or through business outsourcing go independent, inuki properties are increasingly chosen as the first step.

Current State of Beauty Salon Fixture Transfers in the Nagoya Area

Looking at the data on beauty salon fixture transfers in Nagoya handled by VELETA, the market shows the following trends:

• Motoyama, Kakuozan, and Sakae areas: High demand from prospective owners, making it easy to find buyers

• 2nd and 3rd-floor properties: Demand is more stable compared to restaurants

• 3 or more shampoo units and 5 or more styling stations: More likely to lead to high-value deals

• 3 to 5 years of operation: The period when fixture value is best preserved

Owners who act early and choose to leverage the value of their fixturestend to secure more remaining funds in the end.

When you start considering closing, first check the value of your fixtures

Once you start feeling that "it's difficult to continue" or "my lifestyle has changed," the first thing you should check is the market price for your fixtures.

For beauty salons, the number of facilities (shampoo units and styling stations) directly impacts the appraisal. With VELETA's free AI appraisal tool, you can instantly calculate the estimated fixture transfer fee and remaining security deposit just by entering your business type and equipment details.

👉 Beauty Salon Fixture Transfer AI Appraisal | VELETA

Summary

• 235 hair salon bankruptcies in 2025, a record high for the second consecutive year

• 49.0% of bankruptcies involve businesses less than 10 years old, indicating a trend of "shortening lifespans" in the industry

• 11 bankruptcies due to "labor shortages," the highest number since 2013

• If planned closures are included, the actual number of store closures is even higher

• On the other hand, demand for existing properties is rising, and the fixture transfer market is becoming more active

• Once you start considering closing your business, checking the value of your fixtures early is the key to maximizing your remaining proceeds

👉 Related Article: What is the market price for beauty salon fixture transfers? An explanation by hair salon, nail salon, and esthetic salon
👉 Related Article: [Case Study] A hair salon in Motoyama, Chikusa-ku, Nagoya (17 tsubo, 2nd floor) was sold for a fixture transfer fee of 3.75 million yen

Source: Teikoku Databank, Ltd. "Bankruptcy Trends of Beauty Salons (2025)"

VELETA Co., Ltd. | Oasis Sakae Bldg. 4F, 1-9-29 Higashisakura, Higashi-ku, Nagoya | TEL 052-950-3075
Specializing in real estate brokerage, restaurant and beauty salon fixture transfers, and existing property brokerage