10,425 Bankruptcies in FY2025: Exceeding 10,000 for the 2nd Consecutive Year. High Prices and Labor Shortages Directly Hit SMEs - National Corporate Bankruptcy Report FY2025

Teikoku Databank, Ltd. has compiled and analyzed the number of corporate bankruptcies (targeting legal liquidations with liabilities of 10 million yen or more) for the fiscal year 2025.

Overview and Main Points
■ The number of bankruptcies in FY2025 was 10,425 (10,070 in the previous year, an increase of 3.5%), exceeding the previous year for the 4th consecutive year, and surpassing 10,000 cases for the 2nd consecutive year.
■ Total liabilities amounted to 1,553,781 million yen (2,252,572 million yen in the previous year, a decrease of 31.0%), a significant drop from the previous year, remaining below the previous year for two consecutive years. Bankruptcies of micro and small enterprises were prominent, with bankruptcies involving liabilities under 50 million yen reaching the highest level since FY2000, when comparable data became available.
■ By industry, 5 out of 7 industries exceeded the previous year. The 'Service Industry' (from 2,638 to 2,677 cases, up 1.5%) was the highest, followed by the 'Retail Industry' (from 2,109 to 2,233 cases, up 5.9%). Both the 'Service Industry' and 'Retail Industry' updated their highest records since FY2000.
■ By region, 8 regions reached their highest in the past 10 years, excluding only 'Tohoku' (from 572 to 545 cases, down 4.7%), which fell below the previous year. 'Kanto' (from 3,470 to 3,525 cases, up 1.6%) exceeded the previous year for 4 consecutive years, accounting for 33.8% of the total. Looking at the rate of increase/decrease, 'Hokuriku' (from 323 to 375 cases, up 16.1%) was the highest, surpassing the previous year in all prefectures.
■ Bankruptcies after receiving 'Zero-Zero (COVID-19) Loans' were found in 625 cases, a decrease for the 2nd consecutive year.
■ 'Labor Shortage Bankruptcies' were identified in 441 cases, exceeding 400 cases for the first time and significantly updating the past record high.
■ 'Difficulty in finding a successor Bankruptcies' were identified in 533 cases, exceeding the previous year for the first time in 2 years.
■ 'High Price Bankruptcies' were identified in 963 cases, updating the past record high for the 2nd consecutive year.

Aggregation period: April 1, 2025 - March 31, 2026
Announcement date: April 8, 2026
Target: Bankruptcies by legal liquidation with liabilities of 10 million yen or more

## The next announcement date (April 2026 report) is scheduled for Wednesday, May 13th at 1:30 PM.

## 'Service Industry' and 'Retail Industry' at their highest since FY2000
By industry, 5 out of 7 industries exceeded the previous year. The 'Service Industry' (from 2,638 to 2,677 cases, up 1.5%) was the highest, followed by the 'Retail Industry' (from 2,109 to 2,233 cases, up 5.9%). Both the 'Service Industry' and 'Retail Industry' updated their highest records since FY2000. 'Construction Industry' (from 1,932 to 2,041 cases, up 5.6%) and 'Real Estate Industry' (from 296 to 309 cases, up 4.4%) reached their highest in the past 10 years. 'Transport and Communications Industry' (from 458 to 457 cases, down 0.2%).