Japan’s Business Failures in June 2023
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies up for 14 consecutive months
Significant increase of 43.8% from same month last year, higher than the number of cases before the pandemic
|Last Year same month
||123,208 million yen
|Last Year same month
Highlight and Outstanding Feature
- ■There were 782 bankruptcies (544 bankruptcies in the same month of the previous year, up 43.8% year-on-year), up 238 from the same month of the previous year and the fourteenth consecutive month of year-on-year increase. For June, it was the highest level in three years since 2020 (806 bankruptcies), surpassing the pre-coronavirus monthly average of 700 in 2019.
- ■Total liabilities were 123,208 million yen (1,283,908 million yen, down 90.4% from the same month last year), a sharp decrease of more than 90% from the same month last year, partly due to a rebound from the same month last year when the legal liquidation of Marelli HD took place.
- ■By industry, the number of bankruptcies increased year-on-year in six industries excluding the real estate industry. The service industry (to 180 bankruptcies from 135 in the same month of the previous year, up 33.3%) saw the most bankruptcies, increasing for 16 consecutive months. In the retail industry (to 163 from 99, up 64.6% year-on-year), the number of bankruptcies of restaurants doubled, following on from the previous month.
- ■In terms of primary cause, recession-induced bankruptcies numbered 632, comprising more than 80% of the total for the third consecutive month.
- ■By type, the number of bankruptcies filed under the Civil Rehabilitation Act nearly doubled to 31, the first time in 3 years that the number of cases reached the 30 level.
- ■By size of liabilities, the number of bankruptcies of companies with liabilities of less than 50 million yen came to 435, comprising 55.6% of the total.
- ■By business history, the number of bankruptcies of companies that had a business history of “30 years or more” was the highest. Bankruptcies in the start-up companies surpassed those of the same month of the previous year for 16 consecutive months.
- ■By region, eight regions experienced year-on-year increases excluding Hokkaido. Kyushu (to 75 bankruptcies from 37 in the same month of the previous year, up 102.7%) bankruptcies exceeded the same month of the previous year for the ninth consecutive month, the first time this had occurred in 15 years and 5 months. In Kanto (to 258 bankruptcies from 216, up 19.4%), bankruptcies in “Tokyo” increased significantly by more than 20% for the fifth consecutive month.
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