Japan’s Business Failures in May 2024
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies exceeds 1,000 for the first time in 12 years
| Bankruptcies |
1,016 |
| Year-to-Year basis |
+46.4％ |
| Last Year same month |
694 |
| Liabilities |
126,097 million yen |
| Year-to-Year basis |
▲54.9％ |
| Last Year same month |
279,740 million yen |
Highlight and Outstanding Feature
- ■There were 1,016 bankruptcies (694 bankruptcies in the same month of the previous year, up 46.4% year-on-year), marking 25 consecutive months of year-on-year increase. The number of bankruptcies exceeded 1,000 for the first time in 12 years since May 2012 (1,013 bankruptcies). There were 322 more bankruptcies than in the same month of the previous year, the second-largest increase after September 2008 (337 bankruptcies), which was immediately after the start of the 2008 global financial crisis.
- ■The total amount of liabilities came to 126,097 million yen (279,740 million yen in the same month of the previous year, down 54.9%), marking the third consecutive month of year-on-year decrease. The company with the largest amount of liabilities was Copel Corporation, which was involved in child education and such like, coming in at 6,900 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in all seven industries. The service industry (to 244 bankruptcies from 159 in the same month of the previous year, up 53.5%) recorded the most bankruptcies, exceeding the figure for June 2009 (242), and the highest since 2000. In the transport and communication industry (to 45 from 13 in the same month of the previous year), bankruptcies of companies involved in “road freight transport” roughly tripled, reaching the highest number since 2000.
- ■In terms of primary cause, recession-induced bankruptcies numbered 843, marking the 25th consecutive month of year-on-year increase, and the longest period of increase since 2000.
- ■By type, there were 957 cases of “bankruptcy,” exceeding 900 cases for the first time in about 11 years.
- ■By size of liabilities, bankruptcies of companies with liabilities of “less than 50 million yen” was the most common (624 cases). Capital of “individual + less than 10 million yen” (722 cases) accounted for approximately 70% of the total.
- ■By business history, the number of bankruptcies of start-up companies came to 315, the highest number since 2000.
- ■By region, all nine regions experienced year-on-year increases. The largest rate of increase was in Kyushu (to 99 bankruptcies from 57 in the same month last year, up 73.7%), the highest number of bankruptcies for May since 2000.
Bankruptcy Information TOP