TOKYO: The number of corporate bankruptcies with debts of at least 10 million yen in Japan in October rose 14.6 percent from a year before to 909, growing for the second consecutive month, credit research firm Tokyo Shoko Research Ltd. said Monday.
Bankruptcies increased among small and midsize companies that had struggled to continue business due to labor shortages.
Total liabilities left by collapsed companies dropped 17.8 percent to 252,913 million yen. In October, electronics maker Funai Electric Co. went bust with liabilities of 46,964 million yen.
The number of business failures that stemmed from labor shortages more than doubled to 30, reflecting the difficulty of filling vacant positions, soaring personnel costs and worker retirements.
The number of inflation-related bankruptcies in which companies failed to pass on higher procurement costs to clients fell by about 20 percent to 45. Tokyo Shoko Research predicted that such bankruptcies will increase in the months to come due to a weaker yen.
By industry, the number of business failures in the services sector increased 18.8 percent to 303, led by restaurants and entertainment. The number of failures is on an upward trend among construction firms and manufacturers as well, according to Tokyo Shoko Research.
JIJI Press