Japan’s Business Failures in August 2023
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies rapidly increases, 1.5 times higher than same month last year
Total number of bankruptcies in 10 prefectures nationwide exceeded the total in 2022
|Last Year same month
||99,501 million yen
|Last Year same month
||105,906 million yen
Highlight and Outstanding Feature
- ■There were 742 bankruptcies (493 in the same month of the previous year, up 50.5%), up 50% from the same month last year and the third-largest increase since 2000. This figure also exceeded the period of continuous increase between June 2008 and August 2009, which was around the time of the global financial crisis, by increasing for 16 consecutive months against the same month of the previous year.
- ■The total amount of liabilities came to 99,501 million yen (105,906 million yen in the same month of the previous year, down 6.0%), marking the first year-on-year decrease in two months. The amount also dropped below 100,000 million yen for the first time in seven months since January 2023.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. The service industry (to 187 bankruptcies from 133 in the same month of the previous year, up 40.6%) saw a significant increase of more than 40% from the same month of the previous year for the second consecutive month. The number of bankruptcies of “restaurants” totaled 497 from January to August 2023, exceeding the total for the whole of 2022 (452).
- ■In terms of primary cause, recession-induced bankruptcies came to 575, up a 100 or more year-on-year for the seventh consecutive month.
- ■By type, liquidation-type bankruptcies exceeded the same month of the previous year by 200 or more for three consecutive months for the first time since 2000.
- ■By size, the number of bankruptcies of companies with debts of less than 100 million yen exceeded 100 for 6 consecutive months for the first time in about eight years.
- ■By business history, there were 202 bankruptcies of start-up companies, and this marked 18 consecutive months of year-on-year increase.
- ■By region, all regions experienced year-on-year increases for the second consecutive month. In 10 prefectures (Miyagi, Gunma, Mie, Hyogo, Shimane, Kagawa, Fukuoka, Saga, Kumamoto and Miyazaki), the number of bankruptcies has already exceeded the total for the whole of 2022, and the trend of increasing bankruptcies, especially in regional areas, is intensifying.
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