Japan’s Business Failures during April 2022 to March 2023
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies rose in all industries for first time in 14 years
Numbered 883 more than the previous year, up 14.9％
| Bankruptcies |
6,799 |
| From the previous fiscal year |
＋14.9％ |
| Previous Year |
5,916 |
| Liabilities |
2,338,591 million yen |
| From the previous fiscal year |
＋97.7％ |
| Previous Year |
1,182,871 million yen |
Highlight and Outstanding Feature
- ■The number of bankruptcies in FY2022 came to 6,799 (5,916 in the previous year, up 14.9%), the first increase in 3 years since FY2019. Due in part to 11 consecutive months of increases from May 2022 to March 2023, the year 2022 saw the first significant increase of more than 800 bankruptcies from the previous fiscal year in 14 years since FY2008.
- ■Total liabilities were 2,338,591 million yen (1,182,871 million yen in the same period of the previous year, up 97.7%), exceeding 2 trillion yen for the first time in 5 years since FY2017, partly due to the legal liquidation of Marelli Holdings Co., Ltd. (Saitama, Civil Rehabilitation, liabilities of 1,185,626 million yen), in June 2022.
- ■By industry, the number of bankruptcies increased year-on-year in all industries for the first time in 14 years. The construction industry (to 1,291 from 1,084 in the previous year, up 19.1%) saw bankruptcies increase by over 200 for the first time since FY2008. In addition, the service industry (to 1,699 bankruptcies from 1,427, up 19.1%) recorded a significant increase in bankruptcies of businesses providing welfare services to the elderly, and marked the largest increase since FY2000.
- ■The number of recession-induced bankruptcies was 5,249, and the number of bankruptcies caused by “illness or death of management” was a record high.
- ■Looking at the form of business failure, there were over 800 bankruptcies. Biggest increase in 14 years since the 2008 global financial crisis.
- ■By size of liabilities, the number of bankruptcies of companies with liabilities of less than 50 million yen came to 3,927. Substantial increase in bankruptcies of medium-size, small and micro enterprises.
- ■By business history, bankruptcies of start-up companies with less than 10 years of business history were up by more than 400 from the previous year for the first time in 14 years.
- ■By region, all regions experienced year-on-year increases excluding Shikoku. In Hokkaido (to 206 bankruptcies from 142 in the previous year, up 45.1%), bankruptcies in the construction industry doubled (to 33 from 16 in the previous year), and it was the only region to surpass the figure recorded in FY2019 (201), just before the COVID-19 pandemic. In Kinki (to 1,694 bankruptcies from 1,482, up 14.3%) bankruptcies increased by more than 200 for the first time in 14 years.
Bankruptcy Information TOP