Japan’s Business Failures during January to December 2020
(Released by TEIKOKU DATABANK, LTD.)
| Bankruptcies |
7,809 |
| Year-over-Year basis |
▲6.5% |
| Previous Year |
8,354 |
| Liabilities |
1,181,056 million yen |
| Year-over-Year basis |
▲16.4％ |
| Previous Year |
1,413,585 million yen |
Highlight and Outstanding Feature
- ■There were 7,809 bankruptcies in 2020 (8,354 in the previous year, down 6.5% year-on-year), marking the first decrease compared with the previous year in two years. This was the second-lowest level since 2000.
- ■Total liabilities in 2020 came to 1,181,056 million yen (1,413,585 million yen in the previous year, down 16.4% year-on-year), which was even lower than the previous year, when a record-low was posted, and the smallest amount since 2000.
- ■The largest amount of liabilities was posted by Diamet Corporation (Niigata, Civil Rehabilitation Act, December), with liabilities of approximately 57,790 million yen.
- ■By industry, the number of bankruptcies decreased year-on-year in all industries. The construction industry (1,266 bankruptcies, down 10.5% year-on-year) saw the lowest figure ever. On the other hand, in the service industry (1,872 bankruptcies, down 5.2% year-on-year), the number of bankruptcies in the lodging industry (127 bankruptcies) increased significantly. In the retail industry (1,879 bankruptcies, down 3.4% year-on-year), the number of bankruptcies of restaurants (780 bankruptcies) reached a record high.
- ■In terms of primary cause, recession-induced bankruptcies numbered 6,179 (down 6.6% year-on-year). They account for 79.1% (down 0.1 points year-on-year) of all bankruptcies.
- ■In terms of liabilities, bankruptcies of companies with liabilities totaling less than 50 million yen numbered 4,925 (down 4.6% year-on-year). The ratio of these to all bankruptcies has risen for thirteen consecutive years and at 63.1% (up 1.3 points year-on-year). It marked the highest since 2000.
- ■By region, eight of nine regions experienced year-on-year declines. In Hokkaido (173 bankruptcies, down 18.8% year-on-year) bankruptcies fell year-on-year for the third consecutive year, marking the lowest figure ever. In addition, the three regions of Tohoku (361 bankruptcies, down 10.4% year-on-year), Chugoku (346 bankruptcies, down 8.2% year-on-year), and Shikoku (156 bankruptcies, down 13.3% year-on-year) marked year-on-year decreases for the first time in four years.
- ■There were 150 bankruptcies caused by a labor shortage (down 18.9% year-on-year), marking the first year-on-year decrease in five years.
- ■There were 452 bankruptcies caused by a difficulty in finding a successor (down 1.7% year-on-year), marking the first year-on-year decrease in three years, and still at a high level.
- ■There were 491 post-moratorium bankruptcies (down 6.3% year-on-year), marking the first year-on-year decrease in two years.
Bankruptcy Information TOP