The Beat reports that the company's Los Angeles offices are to close on May 31, while Tokyopop's German-based offices will continue to run alongside the film and television division.
Tokyopop founder and CEO Stu Levy released a personal statement confirming the news, and thanked the company's fans for helping bring manga to the US.
"Together, our community has fought the good fight, and as a result, the manga revolution has been won - manga has become a ubiquitous part of global pop culture," Levy said. "I'm very proud of what we've accomplished, and the incredible group of passionate fans we've served along the way.
"My dream was to build a bridge between Japan and America, through the incredible stories I discovered as a student in Tokyo."
Levy founded Tokyopop in 1997 and the company was responsible for kick-starting the English language manga craze of the last decade, with the likes of Sailor Moon and Fruits Basket among the publisher's more popular titles.
Despite Tokyopop's well-documented financial troubles over the past few years, it was only in January that the company signed a new distribution deal with Diamond.
However, by February the Tokyopop Los Angeles office had only six employees following a string of staff cuts, and Blizzard ended its licensing deal with the company last month.