Japan’s Business Failures in July 2022
(Released by TEIKOKU DATABANK, LTD.)
Corporate bankruptcies on the rise for the first time since the start of the COVID-19 pandemic
In addition to high prices, labor shortages due to the rapid increase in COVID-19 are also risks
Number of bankruptcies was 499, the first increase for 3 consecutive months in 2 years and 3 months.
Total liabilities increased for second consecutive month, coming to 90,393 million yen.
| Bankruptcies | 499 |
|---|---|
| Year-to-Year basis | +1.8% |
| Last Year same month | 490 |
| Liabilities | 90,393 million yen |
|---|---|
| Year-to-Year basis | +23.1% |
| Last Year same month | 73,404 million yen |
There were 499 bankruptcies (490 in the same month of the previous year, up 1.8%), a fall from the previous month (544), but up year-on-year for the third consecutive month. The year-on-year increase for the third consecutive month is the first time that has happened in 2 years and 3 months (it happened from September 2019 to April 2020, or 8 consecutive months), and bankruptcies are on a rising trend for the first time since the start of the COVID-19 pandemic.
Total liabilities came to 90,393 million yen (73,404 million yen in the same month of the previous year, up 23.1%), an increase of 16,989 million yen year-on-year, increasing for two consecutive months.
Highlight and Outstanding Feature
- ■By industry, the number of bankruptcies increased year-on-year in four of seven industries. In particular, the construction industry (to 95 bankruptcies from 71 in the same month of the previous year, up 33.8%) saw a significant increase. In addition, the service industry (to 123 bankruptcies from 117, up 5.1%) saw an increase for the fifth consecutive month.
- ■By form, the number of liquidation-type bankruptcies amounted to 481, comprising 96.4%
- ■By business history, there were 149 bankruptcies of companies with a business history of “30 years or more” and 7 of “long-established companies” with a business history of 100 years or more.
- ■By region, five of nine regions experienced year-on-year increases. Tohoku (to 23 bankruptcies from 22 in the same month of the previous year, up 4.5%) saw an increase for 7 months in a row for the first time in about 14 years. Bankruptcy Information TOP