Japan Witnesses Record High Corporate Bankruptcies for Fiscal 2024
(MENAFN) In fiscal 2024, Japan saw a historic surge in corporate bankruptcies, exceeding 10,000 for the first time in over a decade. Based on a report by a newspaper, this data was revealed through a recent survey.
Tokyo Shoko Research, a credit research firm, pointed out that small and medium-sized enterprises (SMEs) were especially affected by the wave of bankruptcies.
Factors such as labor shortages and increasing prices contributed to the financial strain these businesses faced.
The research indicated that bankruptcies involving debts of at least 10 million yen (USD68,100) rose by 12.1 percent compared to the previous year, totaling 10,144 cases.
Among these, businesses with fewer than 10 employees made up the vast majority, accounting for 89.4 percent of the total.
These small enterprises struggled to obtain funding for their operations after special tax deferrals, which had been introduced during the COVID-19 pandemic, were removed.
Although total liabilities decreased by 3.6 percent from the previous year, they still reached 2.37 trillion yen.
The services sector saw the highest number of bankruptcies, with 3,398 cases, marking a 12.2 percent increase and the largest number since fiscal 1989.
The construction industry followed closely, with 1,943 bankruptcies, rising by 9.3 percent. In contrast, the logistics sector saw a decline of 3.8 percent, amounting 424 bankruptcies, due to successful price discussions.
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