Japan’s Business Failures in March 2023
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies at pre-pandemic levels
Total liabilities fall, but bankruptcies of medium-size companies soar
|Last Year same month
||143,514 million yen
|Last Year same month
||182,582 million yen
Highlight and Outstanding Feature
- ■There were 800 bankruptcies (587 bankruptcies in the same month of the previous year, up 36.3% year-on-year), marking the eleventh consecutive month of year-on-year increase. Although bankruptcies had so far been curbed by the pandemic, on a monthly basis they reached the highest level in 2 years and 8 months since July 2020 (847 bankruptcies), reaching the pre-pandemic level of 700 to 800 cases per month.
- ■Liabilities totaled 143,514 million yen (182,582 million yen in the same period last year, down 21.4% year-on-year), marking the first significant drop of more than 20% year-on-year in two months.
- ■By industry, the number of bankruptcies increased year-on-year in all industries. In the construction industry (to 155 bankruptcies from 110 in the previous year, up 40.9%), which is facing labor shortages and an aging population, bankruptcies increased by more than 40% from the same month last year. And in the retail industry (to 164 bankruptcies from 119 in the previous year, up 37.8%), the number of bankruptcies of restaurants continued to increase significantly (to 72 from 49 in the same month last year).
- ■By primary cause, recession-induced bankruptcies grew by over 30% year-on-year for the second consecutive month.
- ■By form of business failure, there were 760 bankruptcies (compared with 537 in the same month last year), the largest increase in 13 years and 9 months.
- ■By scale, the increase in bankruptcies of medium-sized companies with liabilities of between 100 million yen and 1 billion yen stood out.
- ■By business history, the number of bankruptcies of start-ups with less than 10 years of business was up year-on-year for the thirteenth consecutive month.
- ■By region, all regions experienced year-on-year increases excluding Tohoku. In the Kanto region (to 292 from 178 in the previous year, up 64.0%), the number of bankruptcies increased by more than 100 for the first time in 13 years and 8 months, partly due to increases in Tokyo and Kanagawa. Other major increases were also seen in the Kinki, Chubu and Chugoku regions, making for a significant increase nationwide.
Bankruptcy Information TOP