Teikoku Databank: October Corporate Bankruptcies Up 21.8% On Year

November 13, 2007
By Ken Worsley

Our last post began saying it was hard to find good news about Japan’s economy. It’s not getting any easier, since it’s time to discuss Teikoku Databank’s report that Japan’s corporate bankruptcies were up 21.8% compared to last year.

This was the 13th consecutive month with a rise, and the all-time high in terms of the number of companies filing for bankruptcy, with 1,083 firms failing. Total liabilities, however, were 22% lower than a year ago, which seems to hint that more small and medium size firms are failing.

Teikoku points out that two listed firms failed in October: Osaka-based Nova, with liabilities of 43,900 million yen and Hyogo-based Quin Land, with liabilities at 20,300 million yen.

According to the report, all industries recorded increases in the number of bankruptcies over last year, with the construction (309 firms) and retail (218) reporting all-time high numbers of bankruptcies.

768 firms reporting filing for bankruptcy due to sluggish sales. This figure was up 25.3% from a year ago.

Filed Under Bankruptcy, Business, Economic Reports