GachaClub, the online shopping mall chain that began in 2013, will close on Sept. 15.CEO David Lohmer told employees last week that the company is shutting down because the “Gacha Club business model has failed.”
Lohmed said he was taking the “long view” on the business and would be shutting down “after the year is out.”
He said that while the company was able to continue its business, it was “not profitable.”
The company has about 1,000 employees, but Lohming said that “a lot of that is attributable to the large number of people who have been using the Gacha Lounge.”
GachaClub closed in December, leaving its staff with only about 800 employees, and Lohmers announcement on Friday was not immediately known by Gacha’s customers.
It’s unclear if the company will resume business at some point.
Lohmer said that Gacha will be relaunched at some other time, but did not provide details.
He did say that he is considering relocating the company to another location.
Gacha has been in the spotlight lately after it was revealed that the mall had an annual budget of more than $5 million.
The mall has since implemented a number of changes, including banning the sale of new and used clothing.
Gahas management also faced a backlash from a group of young people who wanted to wear their Gacha merchandise in a Gacha lounge, which had become a popular gathering spot.
The incident led to the creation of Gahas own Facebook page and the creation and launch of the Gahams own Twitter account.