Japan recorded 1,028 corporate bankruptcies in July, exceeding 1,000 for the second consecutive month after June. Total liabilities reached ¥236.3 billion, including one company whose liabilities amounted to ¥115.16 billion.
According to an announcement by Tokyo Shoko Research, Japan recorded 1,028 corporate bankruptcies in July, following 1,021 in June and marking the second consecutive month with more than 1,000 cases. This means that the number of bankruptcies has exceeded 1,000 for two consecutive months for the first time in 14 years. The increase in bankruptcies is attributed to rising prices caused by the weak yen and labor shortages.
Total liabilities from the bankruptcies amounted to ¥236.3 billion, a sharp 41.4% increase from the same month a year earlier. Among them, liabilities at 全東信, a credit card payment processing company headquartered in Osaka, reached ¥115.16 billion.
A total of 93 companies cited the weak yen or rising prices as causes of their bankruptcies, while 63 attributed them to labor shortages or rising labor costs. By industry, the number of bankruptcies exceeded the year-earlier level in 7 of the 10 major industries.
Chinese media outlets including Dawan News reported on the figures, prompting sarcastic reactions from Chinese internet users. The article also included statistics on bankruptcy trends and liabilities for the first half of this year.