Pedestrians walk on the street in the Shinjuku district of Tokyo on Sept 30, 2022. (PHILIP FONG / AFP)
TOKYO – A total of 3,141 companies went bankrupt in the April-September period, up 6.9 percent year-on-year, a local credit research company has reported.
The service industry saw a total of 215 bankruptcy cases, the highest among different industries and up for the eighth straight month, while the construction industry saw the fastest growth in the number of bankruptcy cases, which was up by 29.8 percent from a year earlier
It marked the first increase in corporate bankruptcies in three years, according to a survey conducted by Tokyo Shoko Research Ltd.
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The firm said many companies experienced difficulties in repaying financial aid they had received from the government in response to the COVID-19 pandemic.
Regionally, 29 prefectures including Hokkaido and Kyoto, saw bankruptcy cases growing during the period. Meanwhile, Osaka, Hiroshima, and other 14 prefectures saw the bankruptcy number decrease.
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The service industry saw a total of 215 bankruptcy cases, the highest among different industries and up for the eighth straight month, while the construction industry saw the fastest growth in the number of bankruptcy cases, which was up by 29.8 percent from a year earlier.
Due to high fuel prices, the transport sector saw a total of 162 bankruptcy cases, up 42.1 percent, while the real estate sector logged fewer cases, marking the smallest number in 30 years.
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The research company said it is also seeing rising cases since August of bankruptcies caused by high raw material prices due to the weakening of the yen against the US dollar and other major currencies.