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▼ Japan Business Bankruptcies Hit 13-Year High In January
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The number of corporate bankruptcies in Japan in January involving liabilities of at least ¥10 million totaled 887, the highest level in 13 years, Tokyo Shoko Research said Monday.
The figure rose 5.5% from a year earlier, marking an increase for the second straight month, driven by growth in bankruptcies caused by sluggish sales.
Five of the 10 industries surveyed saw year-on-year rises in business failures, including the services, retail, wholesale and transportation sectors.
Bankruptcies stemming from weak sales climbed 6.3% to 649, accounting for the largest share of total failures. Failures linked to accumulated losses stood at 116, up 18.3%.
Bankruptcies due to high prices, where companies could not pass on rising costs and saw profits squeezed, jumped 24.5% to 76.
“This suggests the impact of sluggish real wage growth on consumer behavior,” a Tokyo Shoko Research official said.
Meanwhile, bankruptcies attributed to rising labor costs surged to 19 cases, nearly tripling from a year earlier, as a growing number of small and midsize firms were forced to raise wages to secure workers, worsening their cash positions.
Total liabilities left by failed companies fell 1.3% to ¥119,815 million. There was no failure with liabilities of ¥10 billion or more in the reporting month, while midsize companies accounted for a sizable share of total liabilities.
The figure rose 5.5% from a year earlier, marking an increase for the second straight month, driven by growth in bankruptcies caused by sluggish sales.
Five of the 10 industries surveyed saw year-on-year rises in business failures, including the services, retail, wholesale and transportation sectors.
Bankruptcies stemming from weak sales climbed 6.3% to 649, accounting for the largest share of total failures. Failures linked to accumulated losses stood at 116, up 18.3%.
Bankruptcies due to high prices, where companies could not pass on rising costs and saw profits squeezed, jumped 24.5% to 76.
“This suggests the impact of sluggish real wage growth on consumer behavior,” a Tokyo Shoko Research official said.
Meanwhile, bankruptcies attributed to rising labor costs surged to 19 cases, nearly tripling from a year earlier, as a growing number of small and midsize firms were forced to raise wages to secure workers, worsening their cash positions.
Total liabilities left by failed companies fell 1.3% to ¥119,815 million. There was no failure with liabilities of ¥10 billion or more in the reporting month, while midsize companies accounted for a sizable share of total liabilities.
- 10/2 20:26
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