Japan’s Business Failures in February 2023
(Released by TEIKOKU DATABANK, LTD.)
Increasing Trend in Corporate Bankruptcies Continues after Bottoming out
Increase for the First Time in 3 years in FY2022
There were 574 bankruptcies, marking the tenth consecutive month of year-on-year increase.
Liabilities totaled 100,546 million yen, exceeding 100 billion yen for February for the first time in 4 years.
| Bankruptcies |
574 |
| Year-to-Year basis |
+34.1％ |
| Last Year same month |
428 |
| Liabilities |
100,546 million yen |
| Year-to-Year basis |
+28.8％ |
| Last Year same month |
78,066 million yen |
Highlight and Outstanding Feature
- ■There were 574 bankruptcies (428 bankruptcies in the same month of the previous year, up 34.1% year-on-year), marking the tenth consecutive month of year-on-year increase. The increase of more than 30% from the same month in the previous year was the first such increase in 14 years and 1 month since January 2009 (up 30.2%), excluding May 2021, which saw a rebound increase from the same month of the previous year due to the impact of the holdup of legal liquidations due to the COVID-19 pandemic.
- ■The total amount of liabilities came to 100,546 million yen (78,066 million yen in the same month of the previous year, up 28.8%), marking the first year-on-year increase in 3 months. Total liabilities for February exceeded 100 billion yen for the first time in 4 years since 2019.
- ■By industry, the number of bankruptcies increased year-on-year in five of seven industries. Continued increase in bankruptcies of companies in food-related industries, including restaurants (to 66 from 33 in the same month of the previous year) and food and beverage wholesalers (to 19 from 12).
- ■In terms of primary cause, recession-induced bankruptcies numbered 451. Bankruptcies due to difficulties in collecting accounts receivables surge for first time in 8 years and 6 months.
- ■By size, the increase in the number of bankruptcies of small enterprises and micro enterprises with liabilities of less than 50 million yen and less than 100 million yen is conspicuous.
- ■By business history, the number of bankruptcies of new companies with less than 10 years of business rose for the twelfth consecutive month for the first time in 13 years and 6 months.
- ■By region, all regions experienced year-on-year increases excluding Shikoku. Significant increases continued in Kinki (to 142 bankruptcies from 88 in the same month of the previous year, up 61.4%) and Chubu (to 83 from 38, up 118.4%).
Bankruptcy Information TOP