The bankruptcy files in Japan increased sharply in the fiscal year 2024-25, reaching 10,144 cases, the highest level in 11 years, according to data from Tokyo Shoko research.
The number of bankruptcy cases grew by 12 % on an annual basis, with most sectors increasing in reporting the financial and transportation industries.
Despite the high cases, the total bankruptcy debt decreased to 2.37 trillion yen (16.08 billion dollars) from 2.46 trillion yen in the previous year, with small and medium -sized companies failing. The biggest bankruptcy was the former Mitsubishi Aircraft Corp, which was ranked 641 billion yen in obligations after completing its space project.
The data comes at a time when the Bank of Japan is monitoring the health of companies, while future prices weigh. Governor Kazu Oda said that additional increases depend on the growth of continuous wages and consumer spending.
