Japan’s Business Failures in July 2024
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies of 920 exceeds that of the same month of the previous year for 27 consecutive months
Exceeded 900 cases in July for the first time in 11 years
| Bankruptcies |
920 |
| Year-to-Year basis |
+31.2％ |
| Last Year same month |
701 |
| Liabilities |
776,931 million yen |
| Year-to-Year basis |
+330.5％ |
| Last Year same month |
180,470 million yen |
Highlight and Outstanding Feature
- ■There were 920 bankruptcies (701 bankruptcies in the same month of the previous year, up 31.2% year-on-year), marking 27 consecutive months of year-on-year increase, the longest span since 2000. For July, the number exceeded 900 for the first time in 11 years since 2013 (952).
- ■The total amount of liabilities came to 776,931 million yen (180,470 million yen in the same month of the previous year, up 330.5%), marking the first year-on-year increase in five months. MSJ Asset Management Company (formerly Mitsubishi Aircraft Co., Ltd.), an aircraft manufacturer, had the largest amount of liabilities at 641,300 million yen. Total liabilities excluding MSJ Asset Management Company decreased year-on-year.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. In particular, the service industry (to 240 bankruptcies from 173 in the same month of the previous year, up 38.7%) posted the highest figure. In terms of the rate of increase, the manufacturing industry (to 121 bankruptcies from 63 in the same month of the previous year, up 92.1%) had the highest rate of increase, exceeding 120 for the first time in about 9 years since June 2015 (130).
- ■In terms of primary cause, “recession-induced bankruptcies” numbered 763, marking 27 consecutive months of year-on-year increase.
- ■By type, there were 847 bankruptcies, the most common form, exceeding the same month of the previous year for 28 consecutive months.
- ■By size of liabilities, bankruptcies of companies with liabilities of “less than 50 million yen” were the most common (542 cases). Capital of “Individuals + less than 10 million yen” (668 cases) accounted for 72.6% of the total, matching the record of 72.6% in November 2021.
- ■By business history, there were 286 bankruptcies of “start-up companies,” and this figure exceeded 200 for 10 consecutive months for the first time in 12 years.
- ■By region, all nine regions experienced year-on-year increases for the first time in two months. In Kinki (to 251 bankruptcies from 170 in the same month of the previous year, up 47.6%), the number of bankruptcies in Shiga increased sharply (to 20 from 3, up 566.7%), and the figure reached the highest level in about 15 years since June 2009, when 32 bankruptcies were recorded. The largest rate of increase was in Chugoku (to 52 bankruptcies from 24 in the same month of the previous year, up 116.7%), surpassing the same month last year.
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