Japan’s Business Failures in September 2024
(Released by TEIKOKU DATABANK, LTD.)
Number of bankruptcies reaches 741, exceeding that of the same month of the previous year for 29 consecutive months
Exceeded 700 cases in September for the first time in 10 years
| Bankruptcies |
741 |
| Year-to-Year basis |
+9.1％ |
| Last Year same month |
679 |
| Liabilities |
131,187 million yen |
| Year-to-Year basis |
▲81.1％ |
| Last Year same month |
695,110 million yen |
Highlight and Outstanding Feature
- ■There were 741 bankruptcies (679 bankruptcies in the same month of the previous year, up 9.1% year-on-year), marking the twenty-ninth consecutive month of year-on-year increase. For September, the number exceeded 700 for the first time in 10 years since 2014 (785).
- ■Total liabilities came to 131,187 million yen (down 81.1% from 695,110 million yen in the same month last year), significantly lower than the same month last year when Panasonic Liquid Crystal Display Co., Ltd. was legally reorganized. The largest debt was posted by the Eco Research Institute Ltd., which manufactured plastic alternative materials, coming in at 24,600 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. The service industry had the most cases (to 209 cases from 178 in the same month last year, up 17.4%), surpassing the number of cases in 2008 (201) and setting a new record for the month of September. In the retail industry (to 159 from 151, up 5.3%), there was a notable increase in bankruptcies of restaurants (to 68 from 61).
- ■By main cause, 622 bankruptcies were due to poor sales, accounting for 83.9% of the total, the third highest percentage on record.
- ■By type, the number of cases of special liquidation exceeded 20 for the fourteenth consecutive month, the first time this had happened in about six years.
- ■By size of liabilities, bankruptcies of companies with liabilities of less than 50 million yen were the most common (450 cases). There were 531 bankruptcies with capital of “individual + less than 10 million yen”, accounting for 71.7% of the total.
- ■By business history, the number of bankruptcies of start-ups was 211, exceeding 200 for twelfth consecutive months.
- ■By region, seven of nine regions experienced year-on-year increases. Kinki (to 180 from 170 bankruptcies in the same month last year, up 5.9%) exceeded the same month last year for 24 consecutive months. In the cumulative total for January-September 2024, 11 prefectures including Kochi exceeded the number of cases for the entire year of 2023.
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