Japan’s Business Failures in February 2026
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies exceeds previous year for third consecutive month
FY2025 bankruptcies expected to exceed 10,000 for the second consecutive year
| Bankruptcies |
833 |
| Year-to-Year basis |
+8.5% |
| Last Year same month |
768 |
| Liabilities |
122,803 million yen |
| Year-to-Year basis |
▲26.6% |
| Last Year same month |
167,287 million yen |
Highlight and Outstanding Feature
- ■There were 833 bankruptcies (768 in the same month of the previous year, up 8.5% year-on-year), exceeding the previous year for the third consecutive month. The cumulative total for FY2025 (April 2025–March 2026) stands at 9,482 through February, an increase of 287 or 3.1% from the same period of the previous year (9,195). More than 10,000 bankruptcies are expected this fiscal year for the second consecutive year.
- ■The total amount of liabilities came to 122,803 million yen (167,287 million yen in the same month of the previous year, down 26.6%), marking the second consecutive month of year-on-year decrease. Fukushima Construction Materials Co., Ltd., an affiliate of Drone Net Co., Ltd. that handled financing for the group, had the largest liabilities at 33,293 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. The service industry (to 220 bankruptcies from 196, up 12.2% year-on-year) recorded the largest number of bankruptcies, while the transport and communication industry (to 48 from 29, up 65.5%) had a significant increase from the same period last year. The service industry and transport and communication industry recorded the highest February levels since 2000.
- ■By region, six of nine regions experienced year-on-year increases. The largest rate of increase was in Kyushu (to 103 bankruptcies from 71 in the same month last year, up 45.1%), the highest number of bankruptcies for February since 2000. The cumulative total for FY2025 (April 2025–February 2026) has already exceeded the total number for FY2024 in 14 prefectures.
- ■There were 50 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” and the cumulative total for this fiscal year is 595.
- ■The number of bankruptcies due to “labor shortages” in the 10 months to date has already exceeded that in fiscal 2025 and reached a new record high.
- ■There were 47 cases of bankruptcies in which it was “difficult to find successors,” exceeding the previous year for three consecutive months.
- ■There were 73 cases of bankruptcies due to “high prices,” surpassing the previous year for three consecutive months.
Bankruptcy Information TOP