Japan’s Business Failures in June 2024
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies of 807 exceeds that of the same month of the previous year for 26 consecutive months
For June, highest number of bankruptcies in past 10 years
| Bankruptcies |
807 |
| Year-to-Year basis |
+3.2％ |
| Last Year same month |
782 |
| Liabilities |
107,918 million yen |
| Year-to-Year basis |
▲12.4％ |
| Last Year same month |
123,208 million yen |
Highlight and Outstanding Feature
- ■There were 807 bankruptcies (782 bankruptcies in the same month of the previous year, up 3.2% year-on-year), marking 26 consecutive months of year-on-year increase. For June, the number of bankruptcies surpassed the 806 recorded in 2020, when bankruptcies surged in the early months of COVID-19, and marked the highest in 10 years.
- ■The total amount of liabilities came to 107,918 million yen (123,208 million yen in the same month of the previous year, down 12.4%), marking the fourth consecutive month of year-on-year decrease. The largest amount of liabilities was posted by Kairos, coming in at 8,182 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in three of seven industries. The service industry (to 214 bankruptcies from 180 in the same month of the previous year, up 18.9%) saw the number of bankruptcies exceed 200 for the fourth consecutive month, the first time since 2000 this happened. In particular, the number of bankruptcies of entities offering “specialized services” such as management consultants (to 45 from 23 in the same month of the previous year) increased significantly.
- ■In terms of primary cause, “recession-induced bankruptcies” numbered 661, marking 26 consecutive months of year-on-year increase.
- ■By type, there were 771 bankruptcies, the most common form, exceeding the same month of the previous year for 27 consecutive months.
- ■By size of liabilities, bankruptcies of companies with liabilities of “less than 50 million yen” were the most common (491 cases). Capital of “Individuals + less than 10 million yen” (585 cases) accounted for 72.5% of the total, the second-largest ever.
- ■By business history, the number of bankruptcies of “start-ups” was 276, exceeding 200 for nine consecutive months.
- ■By region, five of nine regions experienced year-on-year increases. The largest rate of increase was in Hokkaido (to 28 bankruptcies from 16 in the same month of the previous year, up 75.0%), reaching at least 75% increase ratio for the first time in 10 months. In “Hokuriku” (to 26 from 21 bankruptcies in the same month of the previous year, up 23.8%), the number of bankruptcies exceeded 20 for seven consecutive months and surpassed the same month of the previous year.
Bankruptcy Information TOP