Japan’s Business Failures in February 2022
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies in 2021 are expected to be in the 5,000 range, a historically low level
Need to watch the impact of cost increases due to reasons
such as the invasion of Ukraine and high prices of crude oil
There were 428 bankruptcies with one bankruptcy under the Civil Rehabilitation Act, the lowest number since the act was enforced.
Liabilities totaled 78,066 million yen, the first year-on-year increase in four months.
| Bankruptcies |
428 |
| Year-to-Year basis |
▲3.2% |
| Last Year same month |
442 |
| Liabilities |
78,066 million yen |
| Year-to-Year basis |
+0.4% |
| Last Year same month |
77,745 million yen |
Highlight and Outstanding Feature
- ■By industry, the number of bankruptcies decreased year-on-year in four of seven industries. On the other hand, in the retail industry (83 bankruptcies, up from 82 in the same month of the previous year, a 1.2% increase), bankruptcies changed from a double-digit decrease for eight consecutive months to an increase for the first time in nine months.
- ■In terms of primary cause, recession-induced bankruptcies numbered 339 (325 bankruptcies in the same month of the previous year, up 4.3% year-on-year), marking the first year-on-year increase in ninth months. They accounted for 79.2% (up 5.7 points year-on-year) of all bankruptcies.
- ■In terms of scale, bankruptcies totaling less than 50 million yen numbered 245 and comprised 57.2% of the total.
- ■By region, six of nine regions experienced year-on-year decreases. In Chubu (38 bankruptcies, down from 69 in the same month of the previous year, or a 44.9% decrease), bankruptcies fell significantly by double digits in all prefectures in the region and all industries, marking the lowest level in about 32 years. On the other hand, in Tohoku (30 bankruptcies, up from 8 in the same month of the previous year, or a 275.0% increase) bankruptcies rose significantly year-on-year.
- ■By form of bankruptcy, there was one under the Civil Rehabilitation Act, the lowest level since the act was enforced, and the rate of “clearing-type” bankruptcies was 99.8%.
- ■There were 13 bankruptcies caused by a labor shortage (5 bankruptcies in the same month of the previous year, up 160.0% year-on-year), marking the second consecutive month of year-on-year increase.
- ■There were 42 bankruptcies caused by a difficulty in finding a successor (27 bankruptcies in the same month of the previous year, up 55.6% year-on-year), marking the first year-on-year increase in two months.
- ■There were 20 bankruptcies after the introduction of the coronavirus loan system (a government system to lend to companies affected by the COVID-19 pandemic) (10 in the same month of the previous year, up 100.0%), a year-on-year increase for the eighth consecutive month.
Bankruptcy Information TOP