Japan’s Business Failures in October 2021
(Released by TEIKOKU DATABANK, LTD.)
There were 512 bankruptcies, the lowest level for October in 32 years since the Japanese asset price bubble.
Liabilities totaled 96,727 million yen, the third consecutive month of year-on-year increase.
|Last Year same month
||96,727 million yen
|Last Year same month
||66,948 million yen
Highlight and Outstanding Feature
- ■There were 512 bankruptcies (down 20.9% year-on-year), marking the fifth consecutive month of double-digit year-on-year decrease. Also, even compared with figures before 1999, it was the lowest level in 32 years since 1989 (588 bankruptcies) during the Japanese asset price bubble.
- ■Liabilities totaled 96,727 million yen (up 44.5% year-on-year), marking the third consecutive month of double-digit year-on-year increase.
- ■The largest amount of liabilities was posted by Nagata Business Co., Ltd. (Shizuoka, bankruptcy) with liabilities of approximately 11,200 million yen.
- ■By industry, the number of bankruptcies decreased year-on-year in six of seven industries. There was a noticeable decrease, partly caused by an impact from the end of measures throughout Japan to curb the flow of people traffic including declarations of states of emergency, mainly in industries related to personal service like the service industry (131 bankruptcies, down 13.8% year-on-year) and retail industry (112 bankruptcies, down 31.7% year-on-year). In the construction industry (99 bankruptcies, down 9.2% year-on-year), although the number fell below the same month of the previous year, it increased for the third consecutive month on a monthly basis.
- ■In terms of primary cause, recession-induced bankruptcies numbered 397 (down 20.4% year-on-year), lower than the same month of the previous year for the fifth consecutive month. Such bankruptcies accounted for 77.5% of the total (up 0.4 points from the same month of the previous year).
- ■In terms of scale, bankruptcies totaling less than 50 million yen numbered 310 (down 27.9% year-on-year) and comprised 60.5% of the total.
- ■By region, all regions saw bankruptcies fall by double digits compared with the same month of the previous year. For October, this was the first decrease in all regions in 22 years. There was a significant decrease of 20% or more compared with the same month of the previous year in the four regions of Kinki (120 bankruptcies, down 30.6% year-on-year), Hokkaido (10 bankruptcies, down 28.6% year-on-year), Hokuriku (13 bankruptcies, down 27.8% year-on-year), and Chugoku (20 bankruptcies, down 23.1% year-on-year).
- ■By form, the ratio of “liquidation type” bankruptcies, which are the sum of bankruptcies and special liquidations, was 98.2%, the highest since 2000, alongside August 2017. In addition, bankruptcies under the Civil Rehabilitation Act were in single digits for the first time since its enforcement.
- ■There were 12 bankruptcies caused by a labor shortage (up 33.3% year-on-year), marking the first year-on-year increase in three months.
- ■There were 41 bankruptcies caused by a difficulty in finding a successor (up 46.4% year-on-year), marking the first year-on-year increase in two months.
- ■There were 28 post-moratorium bankruptcies (down 31.7% year-on-year), marking the first year-on-year decrease in two months.
Bankruptcy Information TOP