According to Teikoku Databank, the number of bankruptcies in Japan in FY2023 was 8,881; the highest number since 9 years prior in FY2014. This was a 30,6% increase from the previous fiscal year and also the highest growth rate recorded over the past 30 years.
In terms of business types, bankruptcies of restaurants were the most prominent. More specifically, the number of restaurants that went bankrupt witnessed a 56% increase from the previous year to 802 instances. This is also the highest figure ever recorded. “Chinese and other Oriental Cuisine Restaurants,” including izakaya, beer hall, and ramen shops were among the top.
Teikoku Databank says that this is due to the rise of many challenges, such as soaring utilities and foodstuff prices, labor shortages, and wage hikes. How many small and medium-sized companies struggle to find the money to pay back the government’s Coronavirus interest-free loans was also a crucial factor.
The data recorded a total of 313 bankruptcies due to labor shortages and 837 due to soaring prices.
Source: REUTERS
