Japan’s Business Failures in 1st Half Year 2026
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies exceed 5,000 for 2 consecutive years
High prices, labor shortages hit SMEs
| Bankruptcies |
5,362 |
| Year-on-Year basis |
＋4.2％ |
| Jan to Jun 2025 |
5,146 |
| Liabilities |
830,407 million yen |
| Year-on-Year basis |
＋23.8％ |
| Jan to Jun 2025 |
670,508 million yen |
Highlight and Outstanding Feature
- ■There were 5,362 bankruptcies in the first half of FY2026 (5,146 in the same period of the previous year, up 4.2% year-on-year), exceeding 5,000 in the first half for the second consecutive year. The number of bankruptcies increased for the tenth consecutive half-year since the second half of FY2021 (2,978). The run of ten consecutive half-year increases is the longest since FY2000. At this pace, the number for FY2026 is expected to exceed 10,000 for the third consecutive year.
- ■Total liabilities in the first half of FY2026 came to 830,407 million yen (670,508 million yen in the same period of the previous year, up 23.8%). In the first half of the year, the figure exceeded the previous year's level for the first time in four years, but remained below 1 trillion yen for the second consecutive year, with bankruptcies of small and micro-sized companies particularly prominent. Zentoshin Co., Ltd. (filed for bankruptcy in July 2026), which provided an early settlement service for credit card receivables, had the largest liabilities at 115,164 million yen.
- ■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 1,440 bankruptcies from 1,348 in the same period of the previous year, up 6.8%), followed by the retail industry (to 1,131 bankruptcies from 1,120 in the same period of the previous year, up 1.0%) and the construction industry (to 1,071 bankruptcies from 1,013, up 5.7%).
- ■By region, six of nine regions experienced year-on-year increases. The region with the most bankruptcies was Kanto (to 1,694 from 1,732 in the same period last year, down 2.2%). In Kinki, the number of bankruptcies (to 1,309 from 1,238, up 5.7%), in the first half of the year exceeded 1,300 for the first time in 13 years since 2012 (1,500).
- ■There were 628 bankruptcies due to “high prices,” a record high.
- ■The number of “bankruptcies caused by a labor shortage” was 225, exceeding 200 for the second consecutive year.
- ■There were 296 “bankruptcies due to difficulties in finding successors,” the highest number ever for a first half.
- ■There were 279 cases of “bankruptcies after zero-zero (COVID-19) loans,” marking the second consecutive year of decline.
Bankruptcy Information TOP