Japan’s Business Failures in August 2025
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies reaches 751, exceeding that of the same month of the previous year for the 3rd consecutive month
Trend of moderate increase
| Bankruptcies |
751 |
| Year-to-Year basis |
+0.7% |
| Last Year same month |
746 |
| Liabilities |
112,936 million yen |
| Year-to-Year basis |
+21.8％ |
| Last Year same month |
92,759 million yen |
Highlight and Outstanding Feature
- ■There were 751 bankruptcies (746 bankruptcies in the same month of the previous year, up 0.7% year-on-year), the lowest in 2025, but marking three consecutive months of year-on-year increase with increasing trend. Highest figure for August in the past 10 years. The cumulative total for the January–August 2025 period was 6,710, an increase of 157 or 2.4% from the same period of the previous year (6,553)./li>
- ■Liabilities totaled 112,936 million yen (92,759 million yen in the same month of the previous year, up 21.8%), marking the first year-on-year increase in four months. MPH Co., Ltd., the operator of the hair removal salon Musé Platinum, had the largest debt ever in the industry at 26,000 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in three of seven industries. The service industry (to 184 bankruptcies from 197 in the same month of the previous year, down 6.6%) posted the highest figure. The construction industry (to 154 from 122 in the same month of the previous year, up 26.2%), recorded the highest number of cases for August in the past 10 years, tied with 2016 (154 bankruptcies). In the transport and communication industry (to 34 bankruptcies from 28, up 21.4%), the figure was the highest for August in the past 10 years.
- ■By region, five of nine regions experienced year-on-year increases. The largest rate of increase was in Hokuriku (to 31 bankruptcies from 22 in the same month last year, up 40.9%), the equal third-highest number of cases in August, behind 2003 (32 bankruptcies). In particular, the increase in Toyama (to 8 from 2) was remarkable.
- ■There were 43 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” down from the same month of the previous year for the fourth consecutive month.
- ■There were 34 bankruptcies caused by a “labor shortage,” moving at a record pace.
- ■There were 34 cases of bankruptcy in which it was “difficult to find successors,” bringing the cumulative total for the January–August 2025 period to 347.
- ■There were 76 cases of bankruptcy due to “high prices,” bringing the cumulative total for the January–August 2025 period to 615.
Bankruptcy Information TOP