Tokyo– Toon house Group Tac filed for bankruptcy in Tokyo District Court on Sept. 1 with debts of $7.7 million.

Launched in 1968, Group Tac produced popular TV toons “Japanese Folktales,” “Touch,” “One Stormy Night” and “Spring and Chaos.”

Income declined from $17.8 million in the year ending Aug. 2007 to $7.1 million in the year ending Aug. 2009 due to the decline in the under-12 demo and the recession-driven fall in advertising revenue.

Group Tac was also hit by the death of founder and chairman Atsumi Tashiro, 70, in July.

As a sound man, Tashiro worked on iconic toons of the 1960s including “Atom Boy” and “Lupin the 3rd.”

After the launch of Group Tac, he also produced toon features “Night on the Galactic Railway” (1985) and “Tale of Genji” (1987).

In 2008 Tashiro was given a lifetime achievement award at the Tokyo Anime Fair.