Japan’s Business Failures in December 2023
(Released by TEIKOKU DATABANK, LTD.)
Record number of bankruptcies in 2023
Number of bankruptcies exceeded that of the same month of the previous year for twentieth consecutive month
| Bankruptcies |
806 |
| Year-to-Year basis |
+36.1％ |
| Last Year same month |
592 |
| Liabilities |
101,504 million yen |
| Year-to-Year basis |
+47.7％ |
| Last Year same month |
68,714 million yen |
Highlight and Outstanding Feature
- ■There were 806 bankruptcies (592 bankruptcies in the same month of the previous year, up 36.1% year-on-year), marking the twentieth consecutive month of year-on-year increase. December saw the highest number of bankruptcies in 2023, exceeding the figure (800) reported in March 2023. Bankruptcies surged toward the end of the year due to a reduction in coronavirus relief measures and higher costs due to higher prices.
- ■The total amount of liabilities came to 101,504 million yen (68,714 million yen in the same month of the previous year, up 47.7%), marking the first year-on-year increase in two months. The largest debt was about 5,857 million yen at MC Networks Japan Co., Ltd., which operated Ginza Calla, a hair removal salon.
- ■By industry, six of the seven sectors saw more bankruptcies year-on-year. The service industry (to 220 from 135 in the same month of the previous year, up 63.0%) posted the third-highest figure on record. The transport and communication industry (to 49 from 41, up 19.5%) also saw the second-highest figure for December after December 2008 (52 cases).
- ■In terms of primary cause, recession-induced bankruptcies numbered 641, marking the twentieth consecutive month of year-on-year increase.
- ■By type, there were 752 bankruptcies, the most common form, surpassing 700 for the third consecutive month.
- ■By size, both categories of debt and capital were dominated by bankruptcies of small firms.
- ■By business history, the most common was bankruptcies of companies that had been going for “30 years or more.” Bankruptcies of “start-ups” were up year-on-year for the twenty-second consecutive month.
- ■By region, bankruptcies in all nine regions were up from the same month last year. Hokkaido (to 32 from 16 in the same month of the previous year, up 100.0%) and Tohoku (to 51 from 28, up 82.1%) recorded the highest number in 2023.
- ■Proroute Marumitsu Co., Ltd. (Osaka Prefecture, Corporate Reorganization Act) went bankrupt, the first listed company to go bankrupt in one year and four months.
Bankruptcy Information TOP