The number of corporate bankruptcies with liabilities of ¥10 million ($66,000) or more in Japan in November rose 4.2% to 841 from a year earlier as companies remained under pressure from higher prices amid a weak yen and soaring labor costs, Tokyo Shoko Research said Monday.
The number of business failures grew for the third consecutive month. Bankruptcies caused by difficulties passing on higher costs to clients increased for the first time in four months.
Total liabilities left by failed companies climbed 68.8% to ¥160 billion.
There were two bankruptcy cases with liabilities of ¥10 billion or more. One of them was Nippon Denkai, which became the first publicly traded firm to go bankrupt this year.
By industry, the service sector had 304 bankruptcies, up 2.7%. Construction firms logged a 4.8% increase to 152 cases, and manufactures posted 99 cases, a 4.2% increase.
The cumulative number of corporate bankruptcies came in at 9,164 in the first 11 months of this year. The annual number may top 10,000 for the first time in 11 years, Tokyo Shoko Research said.
“Companies are being hit by higher costs for everything, and more companies will collapse due to the burdens,” a Tokyo Shoko Research official said.
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