Japan’s Business Failures in August 2022
(Released by TEIKOKU DATABANK, LTD.)
Increasing trend in corporate bankruptcies continues for the first time during the COVID-19 pandemic
Gradual increase toward the end of the year, partly due to the impact of high prices of commodities and a weak yen
There were 493 bankruptcies, marking the fourth consecutive month of year-on-year increase.
Liabilities totaled 105,906 million yen, exceeding 100 billion yen for August for the first time in four years.
| Bankruptcies |
493 |
| Year-to-Year basis |
+9.8% |
| Last Year same month |
449 |
| Liabilities |
105,906 million yen |
| Year-to-Year basis |
+11.9% |
| Last Year same month |
94,621 million yen |
Highlight and Outstanding Feature
- ■There were 493 bankruptcies (449 bankruptcies, up 9.8% year-on-year), marking the fourth consecutive month of year-on-year increase. Although the number of bankruptcies itself is stable at a low level, it is still on a gradual upward trend. In addition, tella Inc. (Tokyo, bankruptcy, liabilities of about 187.65 million yen) went bankrupt this month, making it the first listed company to go bankrupt in 1 year and 11 months since Nuts Inc. (September 2020).
- ■The total amount of liabilities came to 105,906 million yen (94,621 million yen in the same month of the previous year, up 11.9%), an increase from the same month of the previous year for the third consecutive month. In August, total liabilities exceeded 100 billion yen for the first time in four years since 2018.
- ■By industry, the number of bankruptcies increased year-on-year in five of seven industries. In the construction industry (to 98 bankruptcies from 78 in the same month of the previous year), bankruptcies increased for the fourth consecutive month. On the other hand, the number of bankruptcies fell by double digits year-on-year for the sixth consecutive month in the retail industry (to 76 bankruptcies from 114).
- ■By type, there were 26 bankruptcies under the Civil Rehabilitation Act, exceeding 20 for the first time in 1 year and 5 months since March 2021.
- ■By scale, medium-sized bankruptcies of companies with liabilities of 100 million yen to 1 billion yen increased.
- ■By region, five of nine regions experienced year-on-year increases. Tohoku (to 22 bankruptcies from 21 in the same month of the previous year, up 4.8%) saw an increase for the eighth consecutive month, the longest stretch since the earthquake disaster in 2011.
Bankruptcy Information TOP