Japan’s Business Failures in May 2026
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies decreased from the previous year for first time in 6 months
Number of bankruptcies due to “high prices” remains at a high level of close to 100
| Bankruptcies |
771 |
| Year-to-Year basis |
▲7.7% |
| Last Year same month |
835 |
| Liabilities |
111,248 million yen |
| Year-to-Year basis |
+19.1% |
| Last Year same month |
93,388 million yen |
Highlight and Outstanding Feature
- ■There were 771 bankruptcies (835 bankruptcies in the same month of the previous year, down 7.7% year-on-year), falling below the figure for the same month of the previous year for the first time in six months. The cumulative total for the January–May 2026 period was 4,307, an increase of 173 or 4.2% from the same period of the previous year (4,134).
- ■Liabilities totaled 111,248 million yen (93,388 million yen in the same month last year, up 19.1%), marking the third consecutive month of year-on-year increase. TOSHIN HOLDINGS CO., LTD. (TSE STANDARD) had the largest liabilities at 16,200 million yen. This was the first listed company to go bankrupt in 10 months since alt inc. (July 2025, Civil Rehabilitation Act).
- ■By industry, all seven major industry categories recorded year-on-year declines for the first time in one year. The service industry had the highest number of bankruptcies (to 196 from 220, down 10.9% from the same month of the previous year), with the figure falling below 200 for the first time in six months. The retail industry (to 171 from 185 bankruptcies in the same month of the previous year, down 7.6%) recorded a year-on-year decline for the second consecutive month. The transport and communication industry (to 29 from 36 bankruptcies in the same month of the previous year, down 19.4%) saw the figure fall below 30 for the first time in 14 months.
- ■By region, seven of nine regions experienced year-on-year declines. Kinki (to 176 from 212, down 17.0% from the same month of the previous year) showed a year-on-year decline for the first time in six months and marked the lowest number in the last two years. Hokkaido (to 21 from 23, down 8.7% from the same month of the previous year) showed a year-on-year decline for the first time in seven months. The largest rate of increase was in Hokuriku (to 39 bankruptcies from 20 in the same month last year, up 95.0%), and its share of total bankruptcies was the highest for any May since 2000.
- ■There were 46 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” down from the same month last year for the third consecutive month.
- ■The number of “bankruptcies caused by a labor shortage” was 28, falling below 30 for the first time in one year.
- ■There were 44 cases of bankruptcies in which it was “difficult to find successors,” down from the previous year for the first time in six months.
- ■There were 97 cases of bankruptcies due to “high prices,” remaining at a high level of nearly 100.
Bankruptcy Information TOP