Japan FY24-25 bankruptcies hit 10,144, highest since 2013

Bankruptcy filings in Japan rose sharply in fiscal 2024–25, reaching 10,144 cases, the highest level in 11 years, according to data from Tokyo Shoko Research.

The number of bankruptcies grew 12% year-on-year, with most sectors reporting increases except for the financial and transportation industries.

Despite the rise in cases, total debt involved in bankruptcies declined to 2.37 trillion yen ($16.08 billion) from 2.46 trillion yen the previous year, as more small and mid-sized firms failed. The largest bankruptcy was former Mitsubishi Aircraft Corp, liquidated with 641 billion yen in liabilities following the termination of its SpaceJet project.

The data comes as the Bank of Japan monitors corporate health while weighing future rate hikes. Governor Kazuo Ueda has said further increases depend on sustained wage growth and consumer spending.