Corporate bankruptcies in the first half of fiscal 2025 reached a 12-year high, while pressure from wage increases and rising interest rates is eroding the financial strength of overleveraged companies. The Diamond editorial department reviewed approximately 3,900 listed companies and identified 408 at high risk of bankruptcy.
Corporate bankruptcies in the first half of fiscal 2025 reached a 12-year high, while bankruptcies caused by labor shortages also hit a record high. Wage-hike pressure caused by rising prices and labor shortages, concerns about deteriorating fiscal conditions, and expectations of further Bank of Japan rate hikes are contributing to higher long-term interest rates. Companies unable to pass higher costs on to selling prices, and those that have survived by taking on debt, are gradually seeing their financial strength erode.
The Diamond editorial department conducted a comprehensive review of approximately 3,900 listed companies and identified 408 in the bankruptcy danger zone. It warns that companies unable to cover accumulated excess debt and rising personnel expenses may face a final reckoning.
The article includes numerous ranking charts by industry, identifying companies in the danger zone across categories including chemicals, retail, electric power, gas, apparel, real estate, travel, restaurants, automobiles, semiconductors, information technology, machinery, paper, railways, road transportation, electrical equipment, steel, construction, pharmaceuticals, glass and wholesale.