Allegations that Kitagawa abused young men who wanted to be stars surfaced in Japanese media in 1999.
But it was not until this year that they ignited full-on soul-searching, following a BBC documentary and denunciations by victims.
“I want to eradicate traces of Johnny Kitagawa off the face of the earth,” Julie Keiko Fujishima, Kitagawa’s niece who will spearhead efforts to compensate victims, said in a statement released Monday.
“As a family member of the offender, I consider it my duty to dismantle the Johnny’s agency,” she added.
As of now, 325 people are demanding compensation for Kitagawa’s abuse through a hotline set up by an external panel of experts, according to the agency.
Compensation will start in November.
Scrutiny of Johnny & Associates intensified as a host of brands, including McDonald’s Japan, automaker Nissan and beer giant Kirin, dropped the company’s stars in recent weeks over the abuse.
Japan’s national broadcaster NHK also announced it will “suspend making new offers” to the agency, meaning its top stars may not appear in the TV station’s popular year-end music show.
The backlash though has garnered the agency’s talent some sympathy, with Masakazu Tokura, chairman of Japan’s most influential business lobby Keidanren, calling them “more of victims than offenders”.