Japan’s Business Failures in October 2024
(Released by TEIKOKU DATABANK, LTD.)
925 bankruptcies, the second-highest level in 2024
Number of bankruptcies exceeded that of the same month of the previous year for 30th consecutive month
| Bankruptcies |
925 |
| Year-to-Year basis |
+17.1％ |
| Last Year same month |
790 |
| Liabilities |
175,568 million yen |
| Year-to-Year basis |
▲42.5％ |
| Last Year same month |
305,584 million yen |
Highlight and Outstanding Feature
- ■There were 925 bankruptcies (790 bankruptcies in the same month of the previous year, up 17.1% year-on-year), marking the thirtieth consecutive month of year-on-year increase. Looking at 2024, bankruptcies in October were the second-highest after May (1,016), and the October figure exceeded 900 for the first time since 2013 (918).
- ■The total amount of liabilities came to 175,568 million yen (305,584 million yen in the same month of the previous year, down 42.5%), and although this figure was below the same month of the previous year for the third consecutive month, it was the second highest amount of liabilities in 2024. Funai Electric Co., Ltd., a manufacturer of video equipment, topped the list of liabilities with 46,964 million yen.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. In particular, the service industry (to 237 bankruptcies from 187 in the same month of the previous year, up 26.7%) posted the highest figure. The construction industry (to 201 bankruptcies from 162 in the same month of the previous year, up 24.1%) recorded over 200 bankruptcies for the first time since October 2013 (209) due to persistently high material prices and labor shortages.
- ■By region, eight of nine regions experienced year-on-year increases. The figure for the Kanto region (to 317 bankruptcies from 302 in the same month of the previous year, up 5.0%) was boosted by an increase in bankruptcies in Chiba (to 38 from 25). The Tohoku region (to 66 bankruptcies from 39 in the same month of the previous year, up 69.2%) saw the highest growth rate, exceeding 60% of growth rate for the first time in five months. The cumulative total for January-October 2024 has already exceeded the total number for 2023 in 24 prefectures.
- ■There were 75 “bankruptcies after zero-zero (COVID-19-related) loans,” exceeding the same month of the previous year.
- ■The annual number of “labor shortage bankruptcies” (287) exceeded that of 2023 (260) and reached a record high.
- ■There were 63 bankruptcies caused by a “difficulty in finding a successor,” a record high.
- ■There were 91 “bankruptcies due to high prices,” and the annual number (795) reached a record high.
Bankruptcy Information TOP