Key Facts
• August corporate bankruptcies reached 805, up 11.3% year-on-year.
• This marks the first time in 12 years that August cases exceeded 800.
• Small businesses accounted for all cases for six consecutive months.
• Service sector, including restaurants, led with 242 cases, followed by construction with 175.
• Total liabilities rose 12.8% to ¥114.37 billion, surpassing the previous year.
• Major bankruptcy: MPH, operator of Musee Platinum, with liabilities of ¥26 billion.
• Small-scale bankruptcies (liabilities under ¥100 million) made up 76% of cases.
• Risks include rising interest rates and U.S. tariff policies, potentially increasing bankruptcies.
Summary
In August 2025, corporate bankruptcies in Japan rose 11.3% year-on-year to 805 cases, the highest for the month in 12 years. Small businesses dominated, with the service sector leading at 242 cases, followed by construction at 175. Total liabilities increased 12.8% to ¥114.37 billion, driven by major cases like MPH, operator of Musee Platinum, with ¥26 billion in debt. Small-scale bankruptcies accounted for 76% of the total. Experts warn that rising interest rates and U.S. tariff policies could further strain struggling businesses, potentially increasing future bankruptcies.
