Japan’s Business Failures during April 2025 to March 2026
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies exceed 10,000 for the second consecutive year
High prices, labor shortages hit SMEs
| Bankruptcies |
10,425 |
| From the previous fiscal year |
＋3.5％ |
| Previous Year |
10,070 |
| Liabilities |
1,553,781 million yen |
| From the previous fiscal year |
-31.0％ |
| Previous Year |
2,252,572 million yen |
Highlight and Outstanding Feature
- ■There were 10,425 bankruptcies in FY2025 (10,070 bankruptcies in FY2024, up 3.5% year-on-year), marking the fourth consecutive year of year-on-year increase, and surpassing 10,000 annually for the second consecutive year.
- ■Total liabilities were 1,553,781 million yen (2,252,572 million yen in the previous year, down 31.0% year-on-year), a significant decrease from the previous year, and the second consecutive year of decline. The number of bankruptcies of small and medium-sized enterprises increased, with bankruptcies of companies with liabilities of less than 50 million yen reaching the highest level since fiscal 2000, the earliest year for which comparable data are available.
- ■By industry, the number of bankruptcies increased year-on-year in five of seven industries. The largest number of bankruptcies was in the service industry (to 2,677 bankruptcies from 2,638 in the previous year, up 1.5%), followed by the retail industry (to 2,233 bankruptcies from 2,109 in the previous year, up 5.9%). Both the service and retail industries reached new highs since FY2000.
- ■With the exception of Tohoku (to 545 from 572 in the previous year, down 4.7%), which was the only region with a year-on-year decrease, eight regions posted the highest number in the past 10 years. Kanto (to 3,525 from 3,470 in the previous year, up 1.6%) recorded a year-on-year increase for the fourth consecutive year and accounted for 33.8% of the total. In terms of percentage change, Hokuriku (to 375 from 323 in the previous year, up 16.1%) had the highest growth rate, with all prefectures showing year-on-year increases.
- ■There were 625 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” marking the second consecutive year of decline.
- ■There were 441 bankruptcies due to “labor shortages,” surpassing 400 for the first time and marking a significant new all-time high.
- ■There were 533 cases of bankruptcies in which it was “difficult to find successors,” exceeding the previous year for the first time in two years.
- ■There were 963 bankruptcies due to “high prices,” setting a new all-time high for the second consecutive year.
Bankruptcy Information TOP