Japan’s Business Failures during April 2024 to March 2025
(Released by TEIKOKU DATABANK, LTD.)
Corporate bankruptcies in FY2024 top 10,000 for first time in 11 years
Bankruptcies hit record high due to labor shortages and high prices
| Bankruptcies |
10,070 |
| From the previous fiscal year |
＋13.4％ |
| Previous Year |
8,881 |
| Liabilities |
2,252,572 million yen |
| From the previous fiscal year |
-7.5％ |
| Previous Year |
2,434,474 million yen |
Highlight and Outstanding Feature
- ■There were 10,070 bankruptcies in FY2024 (8,881 bankruptcies in FY2023, up 13.4% year-on-year), marking the third consecutive year of year-on-year increase. The number of bankruptcies exceeded 10,000 for the first time in 11 years since FY2013 (10,102 bankruptcies). The number of bankruptcies of small and medium-sized enterprises increased, with bankruptcies of companies with liabilities of less than 50 million yen reaching the highest level since fiscal 2000.
- ■Total liabilities were 2,252,572 million yen (2,434,474 million yen in the previous year, down 7.5% year-on-year), a slight decrease from the previous fiscal year, but exceeding 2 trillion yen for the third consecutive year.
- ■By industry, the number of bankruptcies increased year-on-year in all industries. The service industry (to 2,638 bankruptcies from 2,187 in the same period last year, an increase of 20.6%) saw the most bankruptcies, and posted the highest figure since FY2000. This was followed by the retail industry (to 2,109 from 1,874, up 12.5% from the previous year) and construction industry (to 1,932 from 1,749, up 10.5% from the previous year).
- ■By region, eight of nine regions experienced year-on-year increases. The number of bankruptcies in eight regions, excluding Hokkaido, was the highest in the past 10 years. The largest number of bankruptcies was in Kanto (to 3,470 bankruptcies from 3,204 in the previous fiscal year, up 8.3%), followed by Kinki (to 2,595 bankruptcies from 2,234, up 16.2%). By prefecture, bankruptcies increased year on year in 41 prefectures. Bankruptcies increased year on year in all prefectures of Hokuriku, Chubu and Shikoku.
- ■There were 680 cases of bankruptcies after zero-zero (COVID-19-related) loans, down for the first time from the previous fiscal year.
- ■There were 350 bankruptcies due to labor shortages, exceeding 300 for the second year and marking a record high.
- ■The number of bankruptcies caused by a difficulty in finding a successor was 507, the second-highest record, though the number decreased from the previous year.
- ■There were 925 bankruptcies due to high prices, a record high.
Bankruptcy Information TOP