Bankruptcies in FY07 up 18%. Biggest since FY01: Teikoku Databank
4, 17. 2008
Corporate bankruptcies in Japan totalled 11,333 cases in fiscal 2007with debt of 10 million yen or more each, up 18.4% over the previous year and largest since fiscal 2001, the private credit research company Teikoku Databank announced on April 8, 2008. The total debt of the bankrupt companies also turned to an uptrend at 5,532,286 million yen, up 5.2% over the previous year.
The bankruptcies in fiscal 2007 went up in all industries over the previous year. Conspicuous among them were companies in the construction industry numbering 3,043 (up 14.2% over the previous year) and those in the retailing industry numbering 2,140 (up 28.1%). Increases in bankruptcies were also noticed particularly among the firms that faced management difficulty because of sales decline amid the dwindling consumer spending, companies that have been in business for more than 30 years, and smaller and one-man operated firms. "Bankruptcies due to bad economic condition" totalled 8,779 cases, an increase of 21.8% over fiscal 2006.