Japan’s Business Failures in July 2026
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies exceed 1,000 for the second consecutive month
To a high level not seen since the 2008 financial crisis
| Bankruptcies |
1,037 |
| Year-to-Year basis |
+8.5% |
| Last Year same month |
956 |
| Liabilities |
234,118 million yen |
| Year-to-Year basis |
+40.6% |
| Last Year same month |
166,473 million yen |
Highlight and Outstanding Feature
- ■There were 1,037 bankruptcies (956 bankruptcies in the same month of the previous year, up 8.5% year-on-year), marking the second consecutive month of year-on-year growth. This was nine more than the 1,028 recorded in the previous month, marking the highest monthly total this year. This marks the first time in about 17 years, since November–December 2009 when the effects of the 2008 financial crisis were still being felt, that monthly bankruptcies exceeded 1,000 for two consecutive months.
- ■Liabilities totaled 234,118 million yen (166,473 million yen in the same month last year, up 40.6%), marking the fifth consecutive month of year-on-year growth and the highest monthly total this year. It was the first time in seven months since December 2025 that the monthly liabilities exceeded 200 billion yen. Zentoshin Co., Ltd., which provided an early settlement service for credit card receivables, had the largest liabilities at 115,164 million yen, accounting for about 50% of the total.
- ■By industry, the number of bankruptcies increased year-on-year in five of seven industries. The service industry recorded the highest number of bankruptcies (to 261 from 263, down 0.8% year-on year), followed by the retail industry (to 234 from 184, up 27.2%) and the construction industry (to 207 from 181, up 14.4%). Both the retail and construction industries exceeded 200 cases.
- ■By region, seven of nine regions experienced year-on-year increases. Kyushu (to 115 from 99 in the same month of the previous year, up 16.2%) had the second-highest since 2000. The largest rate of increase was in Tohoku (to 63 bankruptcies from 40 in the same month last year, up 57.5%), with all prefectures exceeding the previous year’s figures, making it the second highest July since 2000.
- ■There were 121 bankruptcies due to “high prices,” a record high.
- ■There were 30 cases of bankruptcies caused by a “labor shortage,” falling below the previous year’s level for the first time in three months.
- ■There were 52 cases of bankruptcies in which it was “difficult to find successors,” exceeding the previous year for two consecutive months.
- ■There were 63 cases of “bankruptcies after zero-zero (COVID-19-related) loans,” and of these, the retail industry had the most, with 16 cases.
Bankruptcy Information TOP