Japan sees record bankruptcies in more than decade
Small, medium-sized businesses bear brunt due to labor shortage, rising prices
A member of the public walks past a display showing the Nikkei Stock Average in Tokyo's financial district, Kayabacho on March 25, 2024 in Tokyo, Japan.
ISTANBUL
Japan experienced a record number of corporate bankruptcies in fiscal 2024, surpassing 10,000 for the first time in 11 years, the Mainichi Shimbun newspaper reported Tuesday, citing a survey.
Tokyo Shoko Research, a credit research company, said small and medium-sized businesses bore the brunt of the bankruptcies due to a labor shortage and rising prices.
It reported that bankruptcies involving debts of at least 10 million yen ($68,100), increased 12.1% from the previous year to 10,144.
Companies with fewer than 10 employees accounted for 89.4% of the total, as they struggled to secure financing for operations following the end of special tax deferral measures implemented during the coronavirus pandemic.
Total liabilities fell 3.6% from the previous year, totaling 2.37 trillion yen.
The services sector recorded the highest number of bankruptcies with 3,398, a 12.2% increase, and the largest since fiscal 1989. The construction sector followed with 1,943, rising 9.3%.
Bankruptcies in the logistics industry decreased 3.8%, totaling 424 cases, as a result of price negotiations.
