Japan’s Business Failures in April 2023
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies exceeds that of the same month of the previous year for 12 consecutive months
Year-on-year increase of 25.3%, more than 600 bankruptcies for second consecutive month
|Last Year same month
||208,807 million yen
|Last Year same month
||72,017 million yen
Highlight and Outstanding Feature
- ■There were 610 bankruptcies (487 bankruptcies in the same month of the previous year, up 25.3% year-on-year), marking the twelfth consecutive month of year-on-year increase. Compared with the previous month, the number of bankruptcies fell by 190 (down 23.8%), and was below the previous month for the first time in three months, but exceeded 600 for the second consecutive month.
- ■Liabilities totaled 208,807 million yen (72,017 million yen in the same month of the previous year, up 189.9%), marking the third consecutive month of year-on-year increase. Monthly liabilities exceeded 200 billion yen for the first time since June 2022.
- ■By industry, the number of bankruptcies increased year-on-year in all industries. The largest number of bankruptcies was in the service industry (to 145 bankruptcies from 139 in the same month of the previous year, up 4.3%), followed by the construction industry (to 133 bankruptcies from 85, up 56.5%). Bankruptcies in the service industry surpassed those of the same month of the previous year for 14 consecutive months.
- ■In terms of primary cause, recession-induced bankruptcies numbered 490, comprising 80.4% of the total.
- ■By form, there were 576 cases of bankruptcy, a double-digit increase from the same month last year for the eighth consecutive month.
- ■By size, there were 334 bankruptcies of companies with liabilities of less than 50 million yen, and the increase in small-scale bankruptcies was conspicuous.
- ■By business history, the number of bankruptcies of start-ups with less than 10 years of business was up by double digits year-on-year for the ninth consecutive month.
- ■By region, all regions experienced year-on-year increases. Shikoku (up 160.0% to 13 bankruptcies from 5 in the same month last year) posted a triple-digit increase for the first time in three months. Kanto (to 245 bankruptcies from 157, up 56.1%) saw an increase of at least 50% compared with the same month last year for the second consecutive month.
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