Japan’s Business failures in the first half of FY2025
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies up for 8 consecutive terms
SMEs face a serious labor shortage
| Bankruptcies |
5,146 |
| Year-on-Year basis |
+3.1％ |
| Apr to Sep 2024 |
4,990 |
| Liabilities |
670,508 million yen |
| Year-on-Year basis |
▲49.6％ |
| Apr to Sep 2023 |
1,329,492 million yen |
Highlight and Outstanding Feature
- ■There were 5,146 bankruptcies, in the first half of FY2025 (4,990 in the same period of the previous year, up 3.1% year-on-year), exceeding 5,000 in the first half for the first time in 12 years since fiscal 2013 (5,320). On a half-year basis, this was the eighth consecutive half-year increase since the second half of fiscal 2021 (2,978). Eighth consecutive half-year periods of increase longest since 2000.
- ■The total amount of liabilities for the first half of FY2025 came to 670,508 million yen (1,329,492 million yen in the first half of the previous year, down 49.6%), the second consecutive half-year decline, and for the first half of the year this figure fell below 1 trillion yen for the first time in four years. The amount of liabilities declined excluding MSJ Asset Management Co., Ltd. (former trade name: Mitsubishi Aircraft Corporation) (liabilities of 641,300 million yen), one company that accounted for about 50% of the total liabilities in the previous year, the number of bankruptcies of small- and medium-sized companies was remarkable.
- ■By industry, the number of bankruptcies increased year-on-year in four of seven industries. The service industry (to 1,348 bankruptcies from 1,312 in the same period last year, an increase of 2.7%) posted the eighth consecutive half-year period of increase, and the highest number since fiscal 2000. The retail industry (to 1,120 from 1,048 in the same period last year, up 6.9%) saw the third-highest number ever.
- ■By region, eight of nine regions experienced year-on-year increases. The highest rate of increase was in Hokuriku (to 191 from 150 in the same period last year, up 27.3%). All bankruptcies in the prefecture were up year on year, and for the first half of the year, the figure was up for the third consecutive year.
- ■There were 334 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” and for the first half this figure was down for the first time from the previous fiscal year.
- ■There were 214 bankruptcies caused by a “labor shortage,” a record high.
- ■There were 264 cases of bankruptcy in which it was “difficult to find successors,” the second-highest number ever for the first half of the year.
- ■There were 488 bankruptcies due to “high prices,” a record high.
Bankruptcy Information TOP