Japan posts highest number of bankruptcies in a decade

Rising costs were the most cited reason.

Japan has recorded the highest number of bankruptcies since 2013, up by 0.5% year-on-year (YoY) with 746 cases, according to Teikoku Databank.

Rising costs were the most cited reason with 64 bankruptcies, surpassing the same period last year.

The total amount of liabilities reached $625.8b (JPY92.8b). Kure Service Corporation, which manufactured and repaired steel ships, had the largest amount of liabilities at $673.5b (JPY10.9b).

By industry, the number of bankruptcies increased YoY in three industries. The service industry posted the highest figure, rising from 187 to 197.

In terms of increase rate, the largest increase was in the wholesale industry (+21.5%). Within wholesale, the retail and food and beverage industries increased by 28.6% and 146.2%, respectively.

By region, Kanto had the highest number of bankruptcies with 279. The largest rate of increase was in Shikoku, up by 50%.

Moreover, cases of bankruptcies due to COVID-19-related and labour shortages decreased, whilst bankruptcies in arrears of taxes and public dues doubled.