According to a poll by a credit research business, the number of corporate bankruptcies in Japan increased for the first time in three years between April and September from a year earlier, rising 6.9 percent to 3,141.
According to Tokyo Shoko Research, the increase was brought on by the challenges businesses faced in recouping government financial assistance they had received in response to the COVID-19 outbreak.
A representative of Tokyo Shoko Research stated that since August, the company has seen an increase in bankruptcies caused by high raw material costs, which were spurred by the yen’s depreciation versus the U.S. dollar and other major currencies.
As a result of Marelli Holdings Co., a significant auto parts manufacturer that requested court protection in June in accordance with Japan’s civil rehabilitation law, the total liabilities left by bankrupt companies increased three times to 1.74 trillion yen ($11.70 billion) in the six-month period.
According to industry, the transportation sector saw 162 bankruptcies, a 42.1 percent increase for the first time in three years and driven by rising fuel prices.
In contrast, the real estate industry saw 104 incidents, a 5.4 percent decrease and the fewest in 30 years.
According to prefecture, there were more bankruptcies in 29, including Hokkaido and Kyoto, while there were less in 16, including Osaka and Hiroshima.
In Shizuoka and Nagasaki, two additional prefectures, the number remained unchanged.
According to the data company, there were 599 bankruptcies nationwide in September, an increase of 18.6% over the same month last year.
There were 144.87 billion yen in total liabilities.