Japan’s Business Failures in May 2025
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies down for first time in 3 years and 1 month
Moderate pace of increase continues
| Bankruptcies |
835 |
| Year-to-Year basis |
-17.8% |
| Last Year same month |
1,016 |
| Liabilities |
93,388 million yen |
| Year-to-Year basis |
-25.9％ |
| Last Year same month |
126,097 million yen |
Highlight and Outstanding Feature
- ■There were 835 bankruptcies (1,016 bankruptcies in the same month of the previous year, down 17.8% year-on-year), falling below the figure for the same month of the previous year for the first time in three years and one month. The continuous increase seen since May 2022 stopped at 36 months. The cumulative total for the January–May 2025 period was 4,134, an increase of 54 or 1.3% from the same period of the previous year (4,080). In the first half of 2025, the number may exceed 5,000 for the first time in 12 years.
- ■The total amount of liabilities came to 93,388 million yen (126,097 million yen in the same month of the previous year, down 25.9%), marking the first year-on-year decrease in two months. Royal Corporation, which sold shoes and casual wear, had the largest amount of liabilities, at 8,330 million yen.
- ■By industry, the number of bankruptcies decreased year-on-year in all industries for the first time in three years and nine months (since August 2021). The service industry had the highest number of bankruptcies (to 220 from 244, down 9.8% from the same month of the previous year), with the figure falling below the same month of the previous year for the first time in five months. The transport and communication industry (to 36 from 54 bankruptcies in the same month of the previous year, down 33.3%) saw the figure fall below the same month of the previous year for seven consecutive months.
- ■By region, seven of nine regions experienced year-on-year declines. The region with the most bankruptcies was Kanto (to 279 from 367 a year earlier, down 24.0%), led by a decrease in bankruptcies in Tokyo, going to 135 from 208. The region with the highest rate of decrease was Chugoku (to 39 from 53 a year earlier, down 26.4%).
- ■There were 63 bankruptcies “after zero-zero (COVID-19-related) loans,” the first decrease over the same month of the previous year in two months.
- ■There were 27 bankruptcies caused by a “labor shortage,” moving at a record pace.
- ■There were 58 cases of bankruptcy in which it was “difficult to find successors,” bringing the cumulative total from January to May 2025 to 224.
- ■There were 69 cases of bankruptcy due to “high prices,” with 40% reporting “soaring prices of raw materials.”
Bankruptcy Information TOP