Japan logs 934 bankruptcies in Oct., year's 3rd-highest tally
TOKYO (Kyodo) -- Corporate bankruptcies in Japan totaled 934 in October, the third-highest monthly tally this year, as rising prices and labor costs w
According to Tokyo Shoko Research, Japan recorded 934 corporate bankruptcies in October, marking the third-highest monthly tally of the year. Rising prices and labor costs have put pressure on businesses, contributing to the increase. The number of failures involving debts of at least 10 million yen fell by 3.2 percent compared to the previous year, marking the second consecutive monthly decline.
Total liabilities increased by 1.4 percent from the same period last year, reaching 129.3 billion yen. Major toy retailer Toys R Us Japan filed for court protection from creditors, having the largest liabilities for the month. Failures with liabilities under 100 million yen accounted for 76.1 percent of the total. Labor shortages were cited as the reason for 50 bankruptcies, with 32 of those attributing their failures to rising personnel costs.
Companies that cannot afford wage increases are experiencing worsening financial conditions, according to a Tokyo Shoko Research official. Inflation-related bankruptcies amounted to 80, with the weak yen increasing the cost of imported raw materials. The services sector, including restaurants, saw the highest number of bankruptcies at 342.
The transportation industry experienced a 2.7 percent increase, totaling 38 bankruptcies due to driver shortages.
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- Japan logs 934 bankruptcies in Oct; year's 3rd-highest tally japantoday.com
