Teikoku Databank Explains: 2025 Bankruptcies Exceed 10,000 for Second Consecutive Year – Soaring Prices and Labor Shortages Directly Hit SMEs
Teikoku Databank announced that corporate bankruptcies in FY2025 surpassed 10,000 for the second consecutive year, with rising prices and labor shortages severely impacting small and medium-sized enterprises. While total liabilities decreased, bankruptcies among micro and small businesses reached a record high.
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- 📰 Published: April 29, 2026 at 16:00
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Teikoku Databank, Ltd. (Headquarters: Minato-ku, Tokyo, President & CEO: Takeo Goto), a credit research company, has released an explanatory video on its official website regarding the National Corporate Bankruptcy Statistics for FY2025.
This video provides explanations on the number of corporate bankruptcies, total liabilities, the development of private arrangement frameworks, and future outlook for FY2025. It clearly communicates the background of bankruptcies, future risks, and issues faced by companies based on the latest data.
Watch details.
[Video Overview]
Title: [Video] Bankruptcy Statistics FY2025 Report – Bankruptcies Exceed 10,000 for Second Consecutive Year
Release Date: April 21, 2026 (Tuesday), released on the company's website
Video URL: https://www.tdb.co.jp/report/economic/20260421-movie-bankruptfy2025/
The number of bankruptcies in FY2025 was 10,425 cases (10,070 cases in the previous fiscal year, a 3.5% increase), marking an increase for the fourth consecutive year and exceeding 10,000 cases for the second consecutive year. Total liabilities amounted to 1,553,781 million yen (2,252,572 million yen in the previous fiscal year, a 31.0% decrease), significantly decreasing from the previous fiscal year and falling below the previous fiscal year for the second consecutive year. Bankruptcies with liabilities less than 50 million yen reached the highest number since FY2000, when comparable data became available, indicating a noticeable trend of bankruptcies among small and micro enterprises.
Furthermore, for large bankruptcies, an increasing number of companies are choosing private arrangements before proceeding with legal liquidation. However, many cases fail to reach an agreement due to the discovery of falsified financial statements or difficulties in coordinating with creditors, ultimately transitioning to legal liquidation. The trust in the company and the difficulty of creditor coordination determine the success or failure of rehabilitation.
Against the backdrop of an uncertain situation in the Middle East, among other factors, the ability to assess environmental changes and make quick decisions and responses will become even more crucial in 2026.
[Video Table of Contents]
0:17 Point 1: About Bankruptcies in FY2025
1:00 Point 2: Specific Characteristics
2:55 Point 3: Key Points in the Development of Private Arrangement Frameworks
5:50 Point 4: Future Outlook
Highlights of the explanatory video:
About Bankruptcies in FY2025
The number of bankruptcies in FY2025 was 10,425 cases (10,070 cases in the previous fiscal year, a 3.5% increase), exceeding 10,000 cases for the second consecutive year. Total liabilities were 1,553,781 million yen (2,252,572 million yen in the previous fiscal year, a 31.0% decrease), falling below the previous fiscal year.
"Bankruptcies due to Soaring Prices" and "Bankruptcies due to Labor Shortages" Reach Record Highs
Looking at specific characteristics, in FY2025, "bankruptcies due to soaring prices" (963 cases) and "bankruptcies due to labor shortages" (441 cases) reached new record highs. By industry, bankruptcies due to soaring prices were most common in construction, while bankruptcies due to labor shortages were most common in the service industry.
Future of Private Arrangements
While the framework for private arrangements has been developed and more companies are choosing it, there are also cases where agreements are not reached and companies fail due to the discovery of falsified financial statements or difficulties in creditor coordination. Therefore, it is necessary to identify the reasons and content behind creditors' inability to agree.
About the Video Commentator:
Satoru Shinozuka
Manager, Information Research Section, Information Management Department, Teikoku Databank, Ltd.
After working for a financial institution, he joined Teikoku Databank in 1998. Assigned to the Information Department, he reported on numerous corporate failures, from small and medium-sized enterprises to large bankruptcies. After serving as Manager of the Sapporo Branch Information Department from 2015, and then Manager of the Yokohama Branch Information Department, he assumed his current position in April 2026.
Currently, he leads a team of 10 investigative reporters, covering bankrupt and notable companies in the 23 wards of Tokyo, exchanging opinions and information with major corporations, financial institutions, media, and government agencies, and conducting seminars (as a lecturer). He also writes articles for "Nikkei Electronic Edition," "Toyo Keizai Online," and "President Online."
This video provides explanations on the number of corporate bankruptcies, total liabilities, the development of private arrangement frameworks, and future outlook for FY2025. It clearly communicates the background of bankruptcies, future risks, and issues faced by companies based on the latest data.
Watch details.
[Video Overview]
Title: [Video] Bankruptcy Statistics FY2025 Report – Bankruptcies Exceed 10,000 for Second Consecutive Year
Release Date: April 21, 2026 (Tuesday), released on the company's website
Video URL: https://www.tdb.co.jp/report/economic/20260421-movie-bankruptfy2025/
The number of bankruptcies in FY2025 was 10,425 cases (10,070 cases in the previous fiscal year, a 3.5% increase), marking an increase for the fourth consecutive year and exceeding 10,000 cases for the second consecutive year. Total liabilities amounted to 1,553,781 million yen (2,252,572 million yen in the previous fiscal year, a 31.0% decrease), significantly decreasing from the previous fiscal year and falling below the previous fiscal year for the second consecutive year. Bankruptcies with liabilities less than 50 million yen reached the highest number since FY2000, when comparable data became available, indicating a noticeable trend of bankruptcies among small and micro enterprises.
Furthermore, for large bankruptcies, an increasing number of companies are choosing private arrangements before proceeding with legal liquidation. However, many cases fail to reach an agreement due to the discovery of falsified financial statements or difficulties in coordinating with creditors, ultimately transitioning to legal liquidation. The trust in the company and the difficulty of creditor coordination determine the success or failure of rehabilitation.
Against the backdrop of an uncertain situation in the Middle East, among other factors, the ability to assess environmental changes and make quick decisions and responses will become even more crucial in 2026.
[Video Table of Contents]
0:17 Point 1: About Bankruptcies in FY2025
1:00 Point 2: Specific Characteristics
2:55 Point 3: Key Points in the Development of Private Arrangement Frameworks
5:50 Point 4: Future Outlook
Highlights of the explanatory video:
About Bankruptcies in FY2025
The number of bankruptcies in FY2025 was 10,425 cases (10,070 cases in the previous fiscal year, a 3.5% increase), exceeding 10,000 cases for the second consecutive year. Total liabilities were 1,553,781 million yen (2,252,572 million yen in the previous fiscal year, a 31.0% decrease), falling below the previous fiscal year.
"Bankruptcies due to Soaring Prices" and "Bankruptcies due to Labor Shortages" Reach Record Highs
Looking at specific characteristics, in FY2025, "bankruptcies due to soaring prices" (963 cases) and "bankruptcies due to labor shortages" (441 cases) reached new record highs. By industry, bankruptcies due to soaring prices were most common in construction, while bankruptcies due to labor shortages were most common in the service industry.
Future of Private Arrangements
While the framework for private arrangements has been developed and more companies are choosing it, there are also cases where agreements are not reached and companies fail due to the discovery of falsified financial statements or difficulties in creditor coordination. Therefore, it is necessary to identify the reasons and content behind creditors' inability to agree.
About the Video Commentator:
Satoru Shinozuka
Manager, Information Research Section, Information Management Department, Teikoku Databank, Ltd.
After working for a financial institution, he joined Teikoku Databank in 1998. Assigned to the Information Department, he reported on numerous corporate failures, from small and medium-sized enterprises to large bankruptcies. After serving as Manager of the Sapporo Branch Information Department from 2015, and then Manager of the Yokohama Branch Information Department, he assumed his current position in April 2026.
Currently, he leads a team of 10 investigative reporters, covering bankrupt and notable companies in the 23 wards of Tokyo, exchanging opinions and information with major corporations, financial institutions, media, and government agencies, and conducting seminars (as a lecturer). He also writes articles for "Nikkei Electronic Edition," "Toyo Keizai Online," and "President Online."