TOKYOJune 10 (News On Japan) – The number of business bankruptcies in Japan surpassed 1,000 last month for the first time in almost 11 years.
According to Tokyo Shoko Research, there were 1,009 business bankruptcies nationwide in May with debts of 10 million yen or more, a 42% increase from last year.
Total liabilities amounted to 136.769 billion yen, down 50% from the previous year.
It is the first time since July 2013, about ten years and ten months ago, that the number of bankruptcies has exceeded the thousand mark in one month.
By industry sector, the services sector accounted for the largest share at 32%, followed by the construction industry with 19% and wholesale trade with 13%.
The most common cause of bankruptcies was poor sales performance, with 753 cases reported. Additionally, there were 87 bankruptcies attributed to rising prices, the highest number since the COVID-19 pandemic began in 2020.
In addition, the number of bankruptcies involving companies using the government’s unsecured zero-interest loans, known as ‘zero foreclosures’, also reached a record high of 67, matching the figure in March.
Tokyo Shoko Research noted that the combination of the end of COVID-19-related support measures, the depreciation of the yen, rising prices and labor shortages are putting significant pressure on business operations.
It is expected that the annual number of bankruptcies will exceed 10,000 this year for the first time in twelve years.
Source: ANN
