The number of business bankruptcies in Japan rose 6.9% in the April-September period from a year earlier to 3,141 for the first increase in three years, according to a survey by a company credit research.
The rise was attributed to difficulties faced by companies in repaying financial assistance they received from the government in response to the COVID-19 pandemic, Tokyo Shoko Research said.
People walk in Tokyo’s Omotesando area on July 30, 2022, wearing face masks amid the continued spread of coronavirus infections. (Kyodo)
An official from Tokyo Shoko Research said the company has also seen an increase in bankruptcy cases since August due to high commodity prices caused by the weakening of the yen against the US dollar and other major currencies.
Total liabilities left by bankrupt companies rose three times to 1.74 trillion yen ($11.70 billion) during the six-month period, backed by Marelli Holdings Co., a major maker of auto parts which filed for protection in court in June under Japan’s civil rehabilitation. right.
By industry, the transportation sector posted 162 bankruptcy cases, up 42.1% for the first increase in three years, propelled by high fuel prices.
In contrast, the real estate sector recorded 104 cases, down 5.4% and marking the lowest number in 30 years.
By prefecture, 29, including Hokkaido and Kyoto, saw the number of bankruptcies increase, while 16, including Osaka and Hiroshima, saw their number decrease.
The number in two other prefectures, Shizuoka and Nagasaki, was stable.
In September alone, the number of bankruptcies in the country rose 18.6% from a year earlier to 599, according to the research firm.
The total amount of liabilities was 144.87 billion yen.