Japan’s Business Failures in May 2019
(Released by TEIKOKU DATABANK, LTD.)
There were 648 bankruptcies, marking the first year-on-year decrease in two months.
Liabilities totaled 98,286 million yen, the second consecutive month of year-on-year increase.
| Bankruptcies |
648 |
| Year-to-Year basis |
▲11.4% |
| Last Year same month |
731 |
| Liabilities |
98,286 million yen |
| Year-to-Year basis |
+5.3％ |
| Last Year same month |
93,302 million yen |
Highlight and Outstanding Feature
- ■There were 648 bankruptcies (down 11.4% year-on-year) due to fewer bankruptcies of companies with liabilities of less than 100 million yen (483 bankruptcies, down 15.4% year-on-year), marking year-on-year falls for the first time in two months.
- ■Total liabilities came to 98,286 million yen, up 5.3% year-on-year, due to the occurrence of 15 bankruptcies amounting to 1,000 million yen or more (13 bankruptcies in the same month of the previous year).
- ■By industry, the number of bankruptcies decreased year-on-year in all seven industries for the first time in the two years and ten months since July 2016. In the construction industry (103 bankruptcies, down 14.2% year-on-year), the number of bankruptcies of companies related to building equipment work increased, but the number of bankruptcies of those related to job-specific work and general work decreased by double digits year-on-year. In the service industry (161 bankruptcies), the number of bankruptcies of companies involved in the advertising business (10 bankruptcies) and the software business (13 bankruptcies) showed a marked decline, down 12.0% year-on-year.
- ■In terms of primary cause, recession-induced bankruptcies numbered 507, comprising 78.2% of the total.
- ■In terms of scale, bankruptcies totaling less than 50 million yen numbered 387 and comprised 59.7% of the total.
- ■By region, five of nine regions experienced year-on-year declines. In Kanto (216 bankruptcies, down 19.1% year-on-year), the number of bankruptcies of companies in Tokyo (117 bankruptcies) fell 23.0% year-on-year. In Chubu (94 bankruptcies, down 6.0% year-on-year), the number of bankruptcies of companies in the construction industry in Aichi (6 bankruptcies) were on a downward trend, and the number of bankruptcies fell for six consecutive months.
- ■There were 10 bankruptcies caused by a labor shortage (down 9.1% year-on-year). This marked the first year-on-year decrease in ten months.
- ■The largest amount of liabilities was approximately 10,029 million yen posted by Oozora Management Co., Ltd. (Fukui, special liquidation).
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