Japan’s Business Failures in December 2025
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies in December exceeds same month of previous year for fourth consecutive year
Total liabilities reach a 2025 high
| Bankruptcies |
881 |
| Year-to-Year basis |
+3.9% |
| Last Year same month |
848 |
| Liabilities |
289,983 million yen |
| Year-to-Year basis |
+38.0％ |
| Last Year same month |
210,076 million yen |
Highlight and Outstanding Feature
- ■There were 881 bankruptcies (848 bankruptcies in the same month of the previous year, up 3.9% year-on-year), exceeding the figure for the same month of the previous year for the first time in two months. For December, bankruptcies exceeded the previous year for the fourth consecutive year.
- ■Total liabilities came to 289,983 million yen (210,076 million yen in the same month of the previous year, up 38.0%), marking the highest amount in 2025. Drone Net Co., Ltd., a company involved in the development and sale of drone airframes and mining equipment, accounted for about half of the total, with the largest amount of debt at 144,494 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in four of seven industries. The service industry had the most cases (to 232 cases from 215 in the same month last year, up 7.9%), the highest number for December since the year 2000. The wholesale industry (to 105 from 86, up 22.1%) increased the most, exceeding 100 for the first time in five months.
- ■By primary cause, “illness or death of the business owner” accounted for 33 cases, the highest number for December since 2000.
- ■By type of bankruptcy, the number of liquidation-type bankruptcies totaled 856, accounting for 97.2% of the total.
- ■By size of liabilities, bankruptcies of companies with liabilities of “less than 50 million yen” were the most common (545 cases). Bankruptcies of small- and medium-sized businesses were prominent, but there were two cases of bankruptcies of companies with liabilities of “10,000 million yen or more” for the first time in five months.
- ■When broken down by years in operation, bankruptcies of newly established companies totaled 258, comprising 29.3% of all bankruptcies.
- ■By region, six of nine regions experienced year-on-year increases. The largest number of cases was in Kanto (to 305 bankruptcies from 283 in the same month of the previous year, up 7.8%), surpassing the same month last year for seven consecutive months. Bankruptcies in Kinki (to 235 from 231, up 1.7%) increased for the fourth consecutive December.
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