Companies declaring bankruptcy in Japan will likely climb to the most in seven years in 2020, further pressuring an economy hurt by the coronavirus pandemic.
That’s the view of Tokyo-based Teikoku Databank Ltd., which is forecasting that such cases may exceed 10,000 this year, the highest since 2013. Bankruptcy protection filings jumped to 758 in April, with 123 of those caused by factors related to the pandemic, as the outbreak forced hotels and restaurants to close their doors, according to the major credit research firm that compiles Japan corporate failure data.
"This feels worse than the global financial crisis,” said Yuya Akama, general manager of the information department at Teikoku Databank’s Tokyo head branch, in an interview. "There are concerns across sectors like department stores, hospitals, airlines, hotels and tourism bus operators and restaurants.”