The number of companies that went bankrupt nationwide in the six months to last month was the lowest since 2000.
Although the government is continuing to support cash flow as a measure against the new corona, some companies are swelling in borrowing, and research companies have pointed out that the number of bankruptcies may increase toward the end of the year.
According to the credit bureau Teikoku Databank, companies that have taken legal restructuring procedures such as bankruptcy and civil rehabilitation with debt of 10 million yen or more from January to June will be affected by the new corona virus. There were a total of 3083 companies, mainly in the large retail industry and the service industry including hotels and inns.
This is 21.8% less than the same period last year, which is the lowest for half a year since 2000.
The main reason for the decrease in the number of bankruptcies is that the government and financial institutions are providing financial support to companies affected by the new coronavirus.
However, there are concerns about an increase in the number of companies that have fallen into “excessive debt” where sales have not recovered due to requests for shortening business hours due to the declaration of an emergency and the borrowed funds cannot be repaid.
Teikoku Databank said, "In Tokyo, the fourth state of emergency has been declared, but the number of companies that are stuck in management or fail to revitalize their businesses due to excessive debt will increase in the future, and toward the end of the year. The number of bankruptcies may start to rise. "