Business / Corporate

Japan corporate bankruptcies up 6.1% in November

JIJI

The number of corporate bankruptcies nationwide in November rose 6.1 percent from a year earlier to 718, up for the first time in three months, Tokyo Shoko Research Ltd. said.

Total liabilities left by failed companies fell 16.7 percent to ¥121.279 billion, dropping for the first time in five months.

The number of large bankruptcies with debts of at least ¥1 billion stood at 23, marking a high for this year.

At the same time, small-scale failures involving debts of less than ¥100 million accounted for 70 percent of the total.

The survey by the private credit research company covers bankruptcies involving liabilities of ¥10 million or more.

Of the 10 industries covered in the survey, six sectors showed growth in the number of bankruptcies, including transport and services.

Bankruptcies climbed in six of the nine regions, including Tohoku and Kyushu.

An official of Tokyo Shoko Research said that the number of bankruptcies may increase gradually with the approach of New Year’s, when demand for corporate financing grows.