Japanese corporate bankruptcies rise to 13-year high

Photo: Nikkei Asia

This is the highest level in the past 13 years, reflecting the impact of rising prices and persistent labor shortages.

Bankruptcies rose for the fifth consecutive month compared to the same period last year, reaching their highest level since May 2024. Small businesses with fewer than 10 employees accounted for about 90% of all bankruptcies.

Rising prices were behind 85 bankruptcies, mainly in the restaurant, food manufacturing and retail sectors, as rising costs of raw materials and services put huge pressure on businesses, according to Tokyo Shoko Research.

In addition, there were 37 bankruptcies stemming from labor shortages, of which 22 were related to rising personnel costs, double the number from the same period last year.

Companies that cannot pass on the increased costs to their selling prices are having difficulty managing their finances, said an official at Tokyo Shoko Research, who also predicted that the total number of bankruptcies in 2025 could reach around 10,000, marking the second consecutive year that the number has exceeded that mark.

Total liabilities of bankrupt enterprises in October 2025 decreased by 49.6% compared to the same period last year, to about 127.5 billion yen (equivalent to 827 million USD).

Source: https://vtv.vn/doanh-nghiep-nhat-ban-pha-san-tang-cao-nhat-trong-13-nam-100251112055712398.htm