TOKYO, Jan 15 (News On Japan) - Corporate bankruptcies in Japan last year reached over 8,000 for the first time in four years, driven by high inflation and labor shortages, with the possibility of exceeding 10,000 this year as industry faces the '2024 Problem'.
According to Tokyo Shoko Research, there were 8,690 corporate bankruptcies (with debts exceeding 10 million yen) in 2023, a 35% increase from the previous year.
This is the first time in four years that the number of bankruptcies has surpassed 8,000.
The total amount of debt was approximately 2.4 trillion yen, nearly the same as the previous year.
By industry, the highest number of bankruptcies was in the "services and others" sector with 2,940 cases, followed by the construction industry, which faced rising material costs and labor shortages, with 1,693 cases.
The most common cause of bankruptcy was "poor sales," accounting for 6,380 cases or 73%.
Tokyo Shoko Research notes that small and micro enterprise failures are likely to increase, facing stricter cash flow due to the inability to pass on the cost of rising prices and wages, especially with the repayment peak in April for "zero-zero loans."
by Source: ANNnewsCH
