Japan’s Business failures in the first half of FY2023
(Released by TEIKOKU DATABANK, LTD.)
More than 4,000 bankruptcies for the first time in 4 years, “increasing phase” is clear
For the first time in 15 years, bankruptcies in all 7 industries and 9 regions exceeded the same period last year.
|Apr to Sep 2021
||1,586,836 million yen
|Apr to Sep 2021
||1,765,795 million yen
Highlight and Outstanding Feature
Bankruptcy Information TOP
- ■There were 4,208 bankruptcies, in the first half of FY2023 (3,123 in the same period of the previous year, up 34.7% year-on-year), marking the second consecutive year of year-on-year increase in the first half, and exceeding 4,000 for the first time in four years. The year-on-year increase rate (on a semi-annual basis) was the highest since FY2000, with a 34.7% increase over the same period of the previous year.
- ■Total liabilities were 1,586,836 million yen (1,765,795 million yen, down 10.1% year-on-year). Although liabilities fell from the same period of the previous year, for the first time in 10 years they exceeded 1 trillion yen for the second consecutive year in the first half of the year. This was due to a series of large-scale bankruptcies such as that of Panasonic Liquid Crystal Display Co., Ltd. and UNIZO Holdings Company, Limited.
- ■By industry, the number of bankruptcies increased year-on-year in all seven industries for the first time in 15 years. The service industry (to 1,022 bankruptcies from 811, up 26.0% year-on-year) had the largest share, while the retail industry (to 885 from 559, up 58.3%) accounted for a significant increase of more than 300 bankruptcies from the same period last year.
- ■By primary cause, “recession-induced bankruptcies” increased 40% from the same period of the previous year for the first time since FY2000.
- ■By type, there were 3,959 bankruptcies, more than 1,000 more than in the same period of the previous year.
- ■By size, there were 10 bankruptcies of companies with liabilities of 10 billion yen or more, and the increase in large-scale bankruptcies was conspicuous.
- ■By business history, the number of bankruptcies of start-up companies came to 1,230, exceeding 1,200 for the first time in 10 years in the first half of the year.
- ■By region, all nine regions experienced year-on-year increases for the first time in 15 years. Hokkaido (to 118 from 96, up 22.9% year-on-year), Tohoku (to 225 from 147, up 53.1% year-on-year), Kanto (to 1,552 from 1,167, up 33.0% year-on-year) and Kyushu (to 358 from 231, up 55.0% year-on-year) exceeded the first half of FY2019.