Corporate bankruptcies up 7.3%

Jiji Press TOKYO (Jiji Press) — The number of corporate bankruptcies in Japan in October grew 7.3 percent from a year earlier to 733, marking its second consecutive month of increase, Tokyo Shoko Research Ltd. said Thursday.

The number of firms that went bankrupt due to labor shortages was 39, the highest level since the private credit research company started collecting data in 2013.

Total liabilities left by companies that went bankrupt in October decreased 13.8 percent to ¥95,879 million.

Failures involving liabilities under ¥100 million accounted for a little over 70 percent of the total. No cases with liabilities of ¥10 billion and over were reported.

The survey covered failures involving liabilities of at least ¥10 million.

The number of failed companies increased 29.8 percent in the construction sector and 17.5 percent in the service sector, both facing serious labor shortages.

The numbers rose 3.7 percent in the wholesale sector and 7.1 percent in the transport sector.Speech

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