TOKYO, Oct 16 (NNN-NHK) – A total of 3,141 companies went bankrupt, in the Apr-Sept period, up 6.9 percent year on year, a local credit research company, reported.
It marked the first increase in corporate bankruptcies in three years, according to a survey conducted by Tokyo Shoko Research Ltd.
The firm said, many companies experienced difficulties in repaying financial aid they had received from the government, in response to the COVID-19 pandemic.
Regionally, 29 prefectures, including Hokkaido and Kyoto, saw bankruptcy cases growing during the period. Meanwhile, Osaka, Hiroshima, and 14 other prefectures saw the bankruptcy number decrease.
The service industry saw a total of 215 bankruptcy cases, the highest among different industries, and up for the eighth straight month, while the construction industry saw the fastest growth in the number of bankruptcy cases, which was up by 29.8 percent from a year earlier.
Due to high fuel prices, the transport sector saw a total of 162 bankruptcy cases, up 42.1 percent, while the real estate sector logged fewer cases, marking the smallest number in 30 years.
The research company said, it is also seeing rising cases since Aug, of bankruptcies caused by high raw material prices, due to the weakening of the yen against the U.S. dollar and other major currencies.– NNN-NHK
