Japan logs 934 bankruptcies in Oct., year's 3rd-highest tally
TOKYO (Kyodo) -- Corporate bankruptcies in Japan totaled 934 in October, the third-highest monthly tally this year, as rising prices and labor costs weighed on businesses, a credit research company said Tuesday.
The number of failures, involving debts of at least 10 million yen ($63,000), fell 3.2 percent from a year earlier for the second straight monthly decline, according to Tokyo Shoko Research.
Total liabilities rose 1.4 percent from a year earlier to 129.3 billion yen.
Major toy retailer Toys R Us Japan filed for court protection from creditors with the largest liabilities for the reporting month.
Failures with liabilities of less than 100 million yen made up 76.1 percent of the total.
Labor shortages were linked to 50 bankruptcies, with 32 of them attributing their failures to rising personnel costs.
"Companies that implement wage increases beyond their capabilities are facing deteriorations in their financial conditions," a Tokyo Shoko Research official said.
Inflation-related failures came to 80 with the weak yen adding to the cost of imported raw materials.
By industry, services, including restaurants, recorded the most bankruptcies at 342. Transportation saw a 2.7 percent increase to 38 as driver shortages took a toll.
Article source: https://mainichi.jp/english/articles/20261110/p2g/00m/0bu/037000c
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