Japan’s Business Failures in July 2023
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies increased 40% from the same month last year
Consecutive periods of increase, same as around the time of the 2007–2008 financial crisis
|Last Year same month
||180,470 million yen
|Last Year same month
||90,393 million yen
Highlight and Outstanding Feature
- ■The number of bankruptcies rose to 701 (499 in the same month of the previous year, up 40.5%), up year-on-year for 15 consecutive months, and the consecutive periods of increase are the same as from June 2008 to August 2009, around the time of the 2007–2008 financial crisis. First time in three months that the number of bankruptcies fell below the previous month (down 81 or 10.4%), but the first time in three years that the number of bankruptcies exceeded 700 for two consecutive months.
- ■Total liabilities came to 180,470 million yen (90,393 million yen in the same month of the previous year, up 99.7%), significantly exceeding the same month of the previous year. It was the first time in four years and eight months since November 2018 that they exceeded 100,000 million yen for six consecutive months.
- ■By industry, the number of bankruptcies increased year-on-year in all industries. In the service industry (to 173 bankruptcies from 123 in the same month of the previous year, up 40.7%), the figure surpassed the same month of the previous year for 17 consecutive months and the period of increase was the longest since 2000. In the transport and communication industry (to 48 bankruptcies from 31, up 54.8%), the figure was the highest for July since 2000.
- ■By main cause, poor sales accounted for 81.3% of the total, exceeding 80% for the first time in a year.
- ■By type, there were 684 cases of liquidation-type bankruptcy, surpassing the same month of the previous year for 16 consecutive months.
- ■By size, the number of bankruptcies of companies with liabilities of less than 50 million yen came to 411, comprising 58.6% of the total.
- ■By business history, there were 222 bankruptcies of start-up companies, and this marked 17 consecutive months of year-on-year increase.
- ■By region, all regions experienced year-on-year increases for the first time in three months. Hokkaido (to 21 bankruptcies from 8 in the same month of the previous year, up 162.5%) and Kyushu (to 66 from 34, up 94.1%) saw large increases, and the trend of large increases in bankruptcies has spread from metropolitan areas to rural ones.
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