Under new FMW president Shoichi Arai, the promotion began to falter. Arai brought in former International Pro Wrestling, All Japan Pro Wrestling and Super World of Sports jobber Hiromichi Fuyuki as the new booker and he brought an end to the garbage/death matches in favor of an entertainment-oriented style based on that of the WWE. Although this saved the roster from further potential injury, it called into question the essence of FMW's wrestling. Onita began withdrawing further into the background, eventually leaving the promotion altogether to create his own death match ventures and to go back to high school to earn his diploma.
In 2001, in a match against Mammoth Sasaki, Hayabusa attempted a springboard moonsault—one of his signature moves—but slipped on the ropes and fell directly on his neck, breaking it and paralyzing him. He retired, but actually regained some control over his legs a year later. By the end of 2001, Arai owed about a million dollars to influential organizations in Japan, rumored to be connected to the Yakuza (or Japanese Mafia). Realizing that the promotion was going nowhere, he decided to finally close its doors. FMW came to an end with a final show on February 4 2002 and Shoichi Arai declared FMW bankrupt on February 15 2002. On May 16 2002, Arai hung himself in a Tokyo park using his tie to collect life insurance for his money to pay off the Yakuza.
The talent divided into two promotions: Fuyuki's WEW (World Entertainment Wrestling), the name of FMW's title governing body since 1999, and Mr. Gannosuke's WMF (Wrestling Marvelous Future). Some of the talent also made appearances on Onita's special shows.