Japan’s Business Failures in May 2023
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies exceeds that of the same month of the previous year for 13 consecutive months
Exhaustion due to COVID-19 pandemic, increase in number of entities “giving up” on continuing with business
|Last Year same month
||279,740 million yen
|Last Year same month
||78,540 million yen
Highlight and Outstanding Feature
- ■There were 694 bankruptcies (517 bankruptcies in the same month of the previous year, up 34.2% year-on-year), marking the thirteenth consecutive month of year-on-year increase. In addition to an increase of 100 or more from the same month of the previous year for the fourth consecutive month, it was the first time in four years, since 2019 before COVID-19, that the number of cases exceeded 600 in May alone.
- ■Total liabilities came to 279,740 million yen (78,540 million yen in the same month of the previous year, up 256.2%), significantly exceeding the same month of the previous year. It was the first time in 10 years and 6 months since November 2012 that they exceeded 200,000 million yen for two consecutive months.
- ■By industry, the number of bankruptcies increased year-on-year in six industries excluding the transport and communication industry. The service industry (to 159 bankruptcies from 124 in the same month of the previous year, up 28.2%) saw the most bankruptcies, surpassing the same month of the previous year for 15 consecutive months. The retail industry (to 150 bankruptcies from 87, up 72.4%) saw a large increase of 63 bankruptcies from the same month of the previous year.
- ■In terms of primary cause, recession-induced bankruptcies numbered 563, comprising at least 80% of the total for the second consecutive month.
- ■By type, there were 651 cases of bankruptcy, surpassing the same month of the previous year for 14 consecutive months.
- ■By size, there were 405 bankruptcies of companies with liabilities of less than 50 million yen, and the increase in small-scale bankruptcies was conspicuous.
- ■By business history, there were 214 bankruptcies of start-up companies, and this marked 15 consecutive months of year-on-year increase.
- ■By region, seven of nine regions experienced year-on-year increases. In Tohoku (to 38 bankruptcies from 24, up 58.3%), the number of bankruptcies of companies related to the construction industry increased to 11 from 4. Kanto (to 267 bankruptcies from 190, up 40.5%) saw a significant increase of more than 40% from the same month of the previous year for the third consecutive month.
Bankruptcy Information TOP