The number of Japanese companies filing for bankruptcy reached a 12-year high

A latest report released by Japan shows that the number of corporate bankruptcies in Japan reached a new high since 2013 in 2025.

Xinhua News Agency reported that data released by Tokyo Shoko Research, a Japanese business survey company, on Tuesday (January 13th) showed that in 2025, there were 10,300 cases of business bankruptcies for companies with a debt of over 10 million yen, an increase of 2.9% compared to the previous year. This is the fourth consecutive year of increase since 2022.

From the perspective of enterprise size, approximately 90% of the bankruptcy cases involved small and medium-sized enterprises. Among them, the proportion of enterprises with a debt amount of less than 100 million yen was as high as 77%, reaching a new high in the past 30 years. This indicates that small and medium-sized enterprises were the first to bear the brunt under the pressure of costs and the tightening of financing environment.

The data also shows that the number of business bankruptcies caused by labor shortages has soared by 36% year-on-year to 397 cases, setting a new record. Meanwhile, the number of businesses that closed down due to high prices reached 767, having increased for three consecutive years, indicating that the shortage of manpower and high costs are jointly squeezing the business operation space of enterprises.

In terms of industry distribution, among the 10 industries included in the statistics, the number of bankruptcies in seven industries was higher than that of the previous year. Among them, the growth rates in the service industry and the construction industry were particularly significant, reflecting that the risks in industries with a higher reliance on domestic demand and human resources have continued to rise.

The analysis suggests that from now until the end of the fiscal year 2025 (March 2026), as some struggling enterprises gradually become unsustainable and some enterprises that have given up business restructuring exit the market, the number of Japanese business bankruptcies is expected to increase.