Japan’s Business Failures in 1st Half Year 2024
(Released by TEIKOKU DATABANK, LTD.)
First-half bankruptcies highest since 2014
Bankruptcies of companies with a small amount of liabilities stand out
| Bankruptcies |
4,887 |
| Year-on-Year basis |
＋22.0％ |
| Jan to Jun 2023 |
4,006 |
| Liabilities |
681,015 million yen |
| Year-on-Year basis |
▲24.9％ |
| Jan to Jun 2023 |
906,584 million yen |
Highlight and Outstanding Feature
- ■The number of bankruptcies in the first half of 2024 was 4,887 (4,006 in the first half of the previous year, up 22.0%), 881 more than in the same period last year, marking the second consecutive year in which the number of bankruptcies was higher than in the same period of the previous year. Highest number since the first half of 2014 (4,756 bankruptcies).
- ■The total amount of liabilities came to 681,015 million yen (906,584 million yen in the first half of the previous year, down 24.9%), marking the second consecutive year of year-on-year decrease. Micro-, small-, and medium-size enterprises with a small amount of liabilities stood out.
- ■By industry, the number of bankruptcies increased year-on-year in six of seven industries. The service industry (to 1,228 from 958 in the previous year, up 28.2%) saw the number of bankruptcies exceed 1,200 for the first time in 15 years. In the retail industry (to 1,029 from 834 in the previous year, up 23.4%), the number of bankruptcies of restaurants (to 435 from 378) was the highest since 2000.
- ■In terms of primary cause, recession-induced bankruptcies numbered 4,029, comprising 80% of the total. The cause from “management illness or death” was the highest since 2000.
- ■By type, there were 4,595 cases of “bankruptcy,” exceeding 4,000 cases for the first time in nine years since 2015.
- ■By size, there were 2,898 bankruptcies of companies with liabilities of less than 50 million yen, and the increase in small-scale bankruptcies was conspicuous.
- ■In terms of business history, bankruptcies of entities that had been in business for “30 years or more” was the highest at 1,564, accounting for 32.0% of the total. There were 74 bankruptcies of long-established companies with a business history of at least 100 years, the highest since 2000.
- ■By region, all nine regions experienced a year-on-year increase in the first half for the second consecutive year. Excluding Hokkaido, Chubu, and Shikoku, six of the regions saw the largest number of bankruptcies in the first half of the year in past 10 years. Bankruptcies in Kanto (to 1,732 from 1,433, up 20.9% year-on-year) exceeded 1,700 for the first time in 10 years.
Bankruptcy Information TOP