Japan’s Business Failures in October 2025
(Released by TEIKOKU DATABANK, LTD.)
Highest number of bankruptcies this year at 965
Heading toward over 10,000 in a year for the first time in 12 years
| Bankruptcies |
965 |
| Year-to-Year basis |
+4.3% |
| Last Year same month |
925 |
| Liabilities |
142,322 million yen |
| Year-to-Year basis |
▲18.9％ |
| Last Year same month |
175,568 million yen |
Highlight and Outstanding Feature
- ■There were 965 bankruptcies (925 bankruptcies in the same month of the previous year, up 4.3% year-on-year), the highest in 2025 and the fifth consecutive month that the number exceeded the previous year. This was the highest number of bankruptcies for October since 2009 (1,070), and it remained at a high level approaching 1,000. The cumulative total for the January–October 2025 period was 8,584, an increase of 365 or 4.4% from the same period of the previous year (8,219). The gradual upward trend continues, and the number is expected to exceed 10,000 in a year for the first time in 12 years.
- ■The total amount of liabilities came to 142,322 million yen (175,568 million yen in the same month of the previous year, down 18.9%), marking the second consecutive month of year-on-year decrease. The largest debt was 22,222 million yen held by Nakagawa Planning and Construction Co., Ltd., a general construction company that was involved in the installation of solar power generation facilities.
- ■By industry, the number of bankruptcies increased year-on-year in four of seven industries. The service industry (to 243 bankruptcies from 237 in the same month of the previous year, up 2.5%) accounted for 25.2% of the total, the third-highest number since 2000. In the retail industry, the number of bankruptcies in October (to 210 from 188, up 11.7%) exceeded 200 for the first time in 17 years since 2008 (231).
- ■By region, four of nine regions experienced year-on-year increases. The region with the most bankruptcies was Kanto (to 334 bankruptcies from 317 in the same month last year, up 5.4%), which marked the fifth consecutive month of year-on-year growth, and saw the highest number of cases for October in the past 10 years.
- ■There were 69 cases of “bankruptcies after zero-zero (COVID-19-related) loans”, the highest number this year.
- ■There were 42 bankruptcies caused by a “labor shortage,” a record high for the full year.
- ■There were 41 cases of bankruptcies in which it was “difficult to find successors,” bringing the cumulative total for the January–October 2025 period to 425.
- ■There were 93 cases of bankruptcy due to “high prices,” bringing the cumulative total for the January–October 2025 period to 805.
Bankruptcy Information TOP