Key Facts
• Tokyo Shoko Research reported 961 bankruptcy cases in July 2025.
• Cases increased by 0.83% year-on-year, surpassing 900 for the first time since October 2024.
• Total liabilities in July dropped 78.6% year-on-year to ¥167.03 billion.
• Major bankruptcies included JS Foundry (¥16.17 billion) and Kataoka Manufacturing (¥11.67 billion).
• Service industry led with 344 cases (+10.96%), followed by construction (182 cases, -6.18%).
• Tokyo recorded the highest bankruptcies (143 cases), while Kochi had the least (1 case).
• Bankruptcies with liabilities under ¥10 million decreased 12.3% year-on-year to 57 cases.
• Rising labor and material costs, coupled with loan repayments, are pressuring small businesses.
Summary
In July 2025, Japan saw 961 corporate bankruptcies, marking a 0.83% year-on-year increase and the first time in nine months that cases exceeded 900. Total liabilities significantly dropped due to the absence of large-scale bankruptcies like MSJ Asset Management in 2024. Service industries led the bankruptcies, while Tokyo recorded the highest regional cases. Small businesses, particularly those struggling with rising costs and loan repayments, remain vulnerable. Despite a decline in cases with liabilities under ¥10 million, the overall trend suggests increasing financial strain on smaller enterprises.
