The number of companies that went bankrupt nationwide last year increased by 1% compared to the previous year, exceeding 33,4 for the first time in four years. The number of bankruptcies, which has been suppressed by support measures in response to the coronavirus, has returned to pre-pandemic levels.
According to Teikoku Databank, a private credit research company, the number of companies and other businesses with debts of 1000 million yen or more nationwide last year and underwent legal liquidation procedures was 8497,2121, an increase of 33,3 cases or 8000.2019% compared to the previous year.
This is the first time in four years since 4 that the number of bankruptcies has exceeded 31,1, and the number of bankruptcies, which have been suppressed by support measures in response to the coronavirus, has returned to pre-pandemic levels due to the full-scale repayment of so-called "zero-zero loans" and the end of the moratorium on payment of social insurance premiums.
The number of bankruptcies increased in all industries, with the service industry increasing by 2099.47% from the previous year to 7,1783 cases
, the retail industry increasing by 38.8% to 1671,<> cases, and the construction industry increasing by <>.<>% to <>,<>
cases
.
Teikoku Databank, which conducted the survey, said, "There are many cases where people give up on business continuity because they are unable to pass on the increase in purchase prices to prices, or because they cannot secure manpower due to employee turnover or recruitment difficulties."
Amid an increase in the number of bankruptcies, the Financial Services Agency (FSA) is calling on financial institutions to shift their support from the previous financial position and to implement initiatives to revitalize the businesses of their business partners at an early stage.