Japan's coronavirus-linked bankruptcies hit monthly record

Kyodo News

Posted at Feb 26 2021 09:53 PM

The number of coronavirus pandemic-induced corporate bankruptcies in Japan reached a monthly record of 126 in February, with the restaurant and apparel industries hardest hit, a survey by a credit research company showed Friday.

The cumulative number of such bankruptcies since the start of the novel coronavirus outbreak in the country in February last year stood at 1,108, Tokyo Shoko Research said.

With many companies staying afloat by relying on public support measures, pandemic-induced corporate failures could start increasing at a faster pace, it said.

Of the cumulative bankruptcies, eating and drinking establishments made up the largest portion at 194, with such businesses in prefectures subject to the state of emergency hit by restrictions on operating hours and calls for residents to refrain from nonessential outings.

In January, Japan declared a state of emergency covering some prefectures and the restrictions remain in place for 10 of them.

The apparel industry including clothing manufacturers and retailers saw 102 bankruptcies, followed by the construction industry with 97 cases. There were 68 bankruptcies in the accommodation industry.

By region, 271 bankruptcies were filed in Tokyo, followed by 106 cases in Osaka Prefecture.

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