Tonari Animation, the US-based outsourcing studio that contributed to anime like One Piece, Black Clover, Spy × Family, and My Hero Academia, has officially announced its closure. The studio, which was in operation for four years, attributed its shutdown to financial challenges and market pressures, according to an official statement by founder Jarrett Martin on X/Twitter.
Despite these claims, insiders and industry observers point to a series of controversies that likely contributed to the company’s downfall. Allegations of unethical practices, such as the use of AI in creative processes and involvement in NFTs, have marred the studio’s reputation. Tonari also reportedly accrued a $200,000 tax debt with the IRS, further complicating its financial position.
Adding to its troubled history, the studio faced significant backlash for launching a $1,000 anime production course, which was abruptly canceled. Dissatisfaction among assistant producers over low pay and subpar working conditions also tainted the company’s image. Reports claim some positions at Tonari offered wages lower than those at convenience stores, fueling criticism of its labor practices.
The controversy extended beyond internal issues. Tonari Animation reportedly refused to hire foreigners, despite its founder being one. Additionally, Jarrett Martin’s public remarks, which many considered unprofessional, on emotional posts from creators at other studios only amplified the negative perception of both the studio and its leadership.
Tonari Animation’s closure has not spelled the end of Martin’s career in the anime industry. The company will now rebrand as “Creative Freaks,” with Martin stepping into the role of Creative Director. He plans to establish a “Sakuga Division” within the new organization, emphasizing sustainable support for Japanese animation and applying lessons from Tonari’s missteps.
Tonari’s legacy in the anime world remains complex. While it made significant contributions to more than 80 anime productions, its closure highlights ongoing issues in the industry, from financial sustainability to ethical practices. As Creative Freaks emerges from Tonari’s shadow, the anime community will be watching closely to see if the new venture can rebuild trust and support the industry more responsibly.