On September 8, Teikoku Databank (TDB) compiled and analyzed data on corporate bankruptcies in August (including legal restructurings with liabilities of 10 million yen or more) and released the results.
<Bankruptcy Trends>
<Bankruptcies by Industry>
Looking at the data by industry, the "service industry" had the highest number of cases (197 cases in the same month last year → 184 cases, a decrease of 6.6%), with three out of seven industries showing an increase compared to the previous year. The "construction industry" showed the highest growth rate (122 cases → 154 cases, an increase of 26.2%), tying with 2016 (154 cases) for the highest number of cases in August in the past 10 years, while the "transportation and communication industry" (28 cases → 34 cases, an increase of 21.4%) also saw the highest number of cases in August in the past 10 years.
The number of bankruptcies was 751 (746 in the same month last year, a 0.7% increase), the lowest number for 2025, but it was higher than the previous year for the third consecutive month, indicating an upward trend.
The number of cases in August was the highest in the past 10 years, bringing the cumulative total for January-August 2025 to 6710, an increase of 157 cases (2.4%) compared to the same period last year (6553 cases).
Total liabilities amounted to 112.936 billion yen (compared to 92.759 billion yen in the same month last year, a 21.8% increase), exceeding the previous year's figure for the first time in four months. The company with the largest debt was MPH, which operated the hair removal salon "Musee Platinum," with 26 billion yen, the largest ever for a company in that industry.
Furthermore, 43 cases of "bankruptcy following zero-zero (COVID-19) loans" were identified, marking the fourth consecutive month of declines compared to the previous year. 34 cases of "bankruptcy due to labor shortages" were identified, continuing on a record high pace. 34 cases of "bankruptcy due to difficulty in finding a successor" were identified, bringing the cumulative total for January-August 2025 to 347. 76 cases of "bankruptcy due to rising prices" were identified, bringing the cumulative total for January-August 2025 to 615.
