However, for several years this was fought by local municipalities; in 1997, the city of Fukui and other municipalities along the railway lines announced they would establish a committee to provide support to the company to continue operating the lines.

However, two accidents in a six-month span on the Eiheiji Main Line (one on December 17, 2000, between Shiizakai and Higashi-Furuichi stations and another on June 24, 2001, between Hossaka and Hota stations) forced the company to halt all services.

The resulting effect on revenue led to the company's decision to withdraw from the railway business, and in October 2001 it officially notified the Ministry of Land, Infrastructure and Transport.

As the Eiheiji Main Line and Mikuni Awara Line were considered to be a crucial means of transport, Fukui Prefecture decided to set up a third-sector company to continue operating railway services and established Echizen Railway in 2002.

However, the Eiheiji Line was permanently abolished (as revenue was forecast to fall below the amount needed to break even) and bus service was run in its place.