Corporate bankruptcies down 5.7% to 967 in August

JIJI

The number of corporate bankruptcies in August fell 5.7 percent from a year before to 967, the lowest for the month in 20 years, Tokyo Shoko Research Ltd. reported.

The number of business failures fell for the third straight month thanks to the law for improving finances at small companies, the private credit research agency said Monday. Liabilities left by failed companies plunged 72.7 percent to ¥216.6 billion.

The number of corporate bankruptcies in the Tohoku region, which was hit hard by the March 2011 earthquake and tsunami, rose 21.4 percent to 34, up for the first time in 20 months. The rise apparently reflects the waning effects of support steps introduced after the disasters.

The number of firms that collapsed in August also rose in the central regions of Chubu and Hokuriku, and the Chugoku region in western Japan.

The number of small firms that went under after being granted loan repayment moratoriums based on the law came to 19, compared with 16 a year before.