Japan’s Business Failures in January 2024
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies exceeds that of the same month of the previous year for 21 consecutive months
Ten-month total exceeds the number in FY2022
| Bankruptcies |
700 |
| Year-to-Year basis |
+28.2％ |
| Last Year same month |
546 |
| Liabilities |
84,229 million yen |
| Year-to-Year basis |
+65.9％ |
| Last Year same month |
50,769 million yen |
Highlight and Outstanding Feature
- ■There were 700 bankruptcies (546 bankruptcies in the same month of the previous year, up 28.2% year-on-year), marking 21 consecutive months of year-on-year increase. This is 154 more than the same month of the previous year, and the figure exceeded 700 in January for the first time in four years. From April 2023 to January 2024, the cumulative total was 7,277, as of January, exceeding the 6,799 bankruptcies in fiscal 2022.
- ■Total liabilities were 84,229 million yen (50,769 million yen, up 65.9% year-on-year). This was the lowest for this fiscal year, but it was the second month in a row that it was higher than the same month last year.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. The number of bankruptcies in the service industry (to 195 from 143 in the same month of the previous year, up 36.4%) in January was the highest in 12 years since 2012 (194), the year after the Great East Japan Earthquake. With two months to go, six industries, excluding the real estate industry, have exceeded the number in all of fiscal 2022.
- ■In terms of primary cause, recession-induced bankruptcies numbered 575, marking 21 consecutive months of year-on-year increase.
- ■By type, there were 680 cases of liquidation-type bankruptcy, and the number of special-liquidation bankruptcies surpassed the same month of the previous year for two consecutive months.
- ■By size, bankruptcies of companies with liabilities of less than 5 billion yen increased by at least 50% for six consecutive months.
- ■By business history, there were 217 bankruptcies of start-up companies, and this marked 23 consecutive months of year-on-year increase.
- ■By region, seven of nine regions experienced year-on-year increases. “Chugoku” (to 33 from 20 bankruptcies in the same month last year, up 65.0%) exceeded the same month last year for 13 consecutive months. In the 10 months from April 2023 to January 2024, the number of bankruptcies in 32 prefectures exceeded that in fiscal 2022, and the nationwide trend of increase continues.
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