The number of corporate failures rose 2.9 percent in February from a year ago to 1,044, but the amount of debt left by those businesses fell 61.2 percent from the year before to 288.50 billion yen, Tokyo Shoko Research said Tuesday.
The number of failures climbed for the fifth straight month but remained low compared with levels seen over the past decade.
Total liabilities at failed firms dropped below 300 billion yen for the first time in more than 10 years. The credit research firm attributed the decline to greater financial support from the government and a stronger economy.
The figures covered corporate bankruptcies of firms with debts of 10 million yen or more.
Tokyo Shoko Research said there were 53 bankruptcies involving debts of 1 billion yen or more in February, the lowest figure in 10 years.
The report said businesses with four or fewer employees accounted for 63.4 percent of all failures; 59.0 percent of all bankruptcies in the month ended in liquidation.
Bankruptcies declined in five sectors: primary industry comprising agriculture, forestry and fisheries, and mining; transportation; real estate; manufacturing; and wholesaling. Failures were higher in services, information and telecommunications, retailing and construction.