Business failures up in April-Sept.

Jiji Press TOKYO (Jiji Press) — The number of business failures in Japan in April-September grew 0.1 percent from a year earlier to 4,220, up for the first time in nine years on a first-half basis, Tokyo Shoko Research Ltd. said Tuesday.

The data covered failures involving liabilities of ¥10 million or more.

The increase stemmed from labor shortages, mainly in small companies, the private credit research company said.

Total liabilities left by failed companies surged 3.2 times to ¥2,117.3 billion. The rise largely reflected debts left by airbag maker Takata Corp., totaling ¥1,502.4 billion, which filed for bankruptcy protection under the civil rehabilitation law in June.

Business failures due to difficulties in hiring workers more than doubled to 16 cases from seven.

Of the 10 industries surveyed, three saw increases in the number of bankruptcies, including double-digit growth in the services industry, such as restaurants, and the information and communications sector.

Meanwhile, six industries, including manufacturers, retailers and wholesalers, saw decreases in the number of failed firms.

In September alone, the number of business failures rose 4.6 percent from a year before to 679. The total debts jumped 36.1 percent to ¥115.8 billion.

“More companies, mainly small businesses, are likely to go bust due to workforce shortages and increasing labor costs, amid sluggish personal consumption,” a Tokyo Shoko Research official said.Speech

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