Japan biz bankruptcies reach 13-year high in Feb
The number of corporate bankruptcies in Japan involving liabilities of at least 10 million yen totalled 851 last month, the highest level in 13 years for February, Tokyo Shoko Research Ltd. said Monday (March 9).
The figure marked a year-on-year rise of 11.3 per cent and the third consecutive monthly increase, driven in part by worsening business conditions that reflected sluggish sales and growing labour shortages.
By industry, the service sector saw the largest increase, climbing 30.9 per cent to 309 cases.
The construction and transportation industries also posted year-on-year growth.
Sluggish sales were the leading cause of business failures in 625 cases, or 73.4 per cent of the total.
Bankruptcies linked to labour shortages stemming from rising labour costs, retirements and other factors totalled 47, more than double the 19 reported a year earlier.
Total liabilities fell 22.2 per cent to 133.16 billion yen.
Nearly 80 per cent of all cases involved debts of less than 100 million yen, primarily among small companies and microbusinesses.
Oil prices are rising due to escalating military tensions in the Middle East.
Tokyo Shoko Research warned that higher energy costs would push up a variety of expenses, saying, "That would be a further setback for companies whose profitability has already been deteriorating due to higher prices."
[Copyright The Jiji Press, Ltd.]
