Japan’s Business Failures during April 2023 to March 2024
(Released by TEIKOKU DATABANK, LTD.)
Bankruptcies hit nine-year high in FY2023
Growth of 30.6%, highest in 30 years
| Bankruptcies |
8,881 |
| From the previous fiscal year |
＋30.6％ |
| Previous Year |
6,799 |
| Liabilities |
2,434,474 million yen |
| From the previous fiscal year |
＋4.1％ |
| Previous Year |
2,338,591 million yen |
Highlight and Outstanding Feature
- ■The number of bankruptcies in FY2023 was 8,881 (6,799 in the previous year, up 30.6%), 2,082 more than the previous year. For the second year in a row, the number of bankruptcies increased from the previous year, and approached a high level not seen for nine years since FY2014 (9,044). Bankruptcies were up 30.6% from the previous year, the highest increase in the past 30 years.
- ■Total liabilities were 2,434,474 million yen (2,338,591 million yen, up 4.1% year-on-year). There were 19 large-scale bankruptcies of companies with debts of 10 billion yen or more, including Panasonic Liquid Crystal Display Co., Ltd. and Unizo Holdings Co., Ltd., (12 such bankruptcies in the previous year), with total liabilities exceeding 2 trillion yen for the second consecutive year for the first time in 10 years.
- ■By industry, the number of bankruptcies increased year-on-year in all seven industries for the second consecutive year. The service industry (to 2,187 from 1,699 in the previous year, up 28.7%) saw the number of bankruptcies exceed 2,000 for the first time in 12 years. In the retail industry (to 1,874 from 1,315 in the previous year, up 42.5%), the number of bankruptcies of restaurants (to 802 from 514) was the highest since fiscal 2000.
- ■By primary cause, “management illness or death” was the highest since fiscal 2000.
- ■By scale of bankruptcy, 19 companies had liabilities of 10 billion yen or more, the highest in 10 years.
- ■By region, for the first time in 15 years since fiscal 2008, bankruptcies in all nine regions exceeded the previous year’s level and also surpassed the pre-COVID-19 level. Tohoku (to 493 from 336 in the previous year, up 46.7%) saw the highest level since fiscal 2010 (553 bankruptcies).
- ■There were 313 bankruptcies due to a “labor shortage.” This was the first time this annual figure reached around the 300 level, a new record and significantly higher than ever before.
- ■There were 837 “bankruptcies due to high prices.” This annual figure exceeded 800 cases for the first time, a new record and significantly higher than ever before.
Bankruptcy Information TOP