Japan Corporate Bankruptcies Rise for Seventh Straight Month

May 14, 2007
By Ken Worsley

Earlier today, private research firm Teikoku Databank announced that corporate bankruptcies in Japan rose 2.8% in April 2007 compared to April 2006. 817 corporate bankruptcies were recorded in April, and the total number showed an increase for the seventh straight month.

The report covers bankrupt companies with liabilities of 10 million yen or more, and states:

Total liabilities were 591,268 million yen, sharply increasing both on a month-to-month basis (up 25.0%) and on a year-on-year basis (up 40.2%).

Four industries, namely the retail industry (138 cases), the transportation and communication industry (32 cases), the service industry (180 cases) and the real estate industry (31 cases), each recorded an increase in the number of bankruptcies from the corresponding period last year. Among them, the service industry posted its largest number of business failures since April 2005.

The number of recession-induced bankruptcies (599 cases) increased 1.9% year-on-year, accounting for 73.3% of the total. Especially, that of business failures due to sluggish sales (554 cases) went up 3.9%, or 21 cases, from the same period a year earlier.

Gentlemen, draw your conclusions.

Filed Under Business, Economics, Employment