Japan corporate bankruptcies hit 57-year low in 2021

Jiji Press

16:28 JST, January 14, 2022

TOKYO (Jiji Press) — The number of corporate bankruptcies in the nation hit a 57-year low in 2021, curbed by the government’s financing support amid the pandemic, a private survey showed Thursday.

The bankruptcy number plunged 22.4% from the previous year to 6,030, falling for the second straight year to hit the lowest level since 4,212 marked in 1964, according to the survey by Tokyo Shoko Research Ltd., a credit research firm.

Total liabilities left by failed companies fell 5.6% to ¥1,150.7 billion. The survey covered business failures involving liabilities of ¥10 million or more.

The number of pandemic-related bankruptcies, however, doubled from February-December 2020 to 1,668, representing about 30% of the total. The restaurant sector made up the largest share, with the number of cases doubling to 300.

“Some companies are becoming unable to stay afloat despite government support,” a Tokyo Shoko Research official said.

The number of bankruptcies fell in nine of the 10 industry categories covered by the survey.