October saw 13.4% rise in bankruptcies
Written by Writer on Wednesday, November 12th, 2008
October saw 13.4% rise in bankruptcies
The number of firms that went under in October leaped 13.4 percent from a year earlier to 1,429, the highest monthly figure this year, a private credit research agency said Tuesday.
The bankruptcies left behind debts of ¥1.01 trillion, more than double the ¥461.26 billion in the same month a year earlier, according to Tokyo Shoko Research.
Corporate failures in the retail sector came to 182 and those in the transportation sector stood at 66, both highs for the year so far. There were 402 bankruptcies in the construction industry, topping the 400 mark for the fourth straight month, while real estate firm failures soared about 50 percent to 56.
The number of bankruptcies involving debts of ¥1 billion or more was the second-highest this year, at 94. Yamato Life Insurance Co. and New City Residence Investment Corp., a U.S.-affiliated real estate investment trust, together accounted for 37.8 percent of the month’s total.
Eight listed firms folded, the highest monthly figure this year, of which seven were in the real estate and construction sectors.
The number of workers affected by the month’s corporate failures jumped 26.4 percent to 16,883.
Of the 10 industrial sectors surveyed, nine saw bankruptcies increase. The figure for the agriculture, forestry, fisheries and mining sector remained unchanged.
There were 13,007 corporate failures between January and October, making it certain the total annual figure will rise for the third straight year, Tokyo Shoko Research said. Last year saw 14,091 bankruptcies.
Total debt during the 10-month period, at ¥11.08 trillion, represented the first rise past the ¥11 trillion mark in five years. The yearly figure may exceed ¥12 trillion for the first time since 2002, the research agency said.
The figures cover bankrupt companies with debts of ¥10 million or more.
Teikoku Databank, another private research firm, said 1,231 firms failed in October, up 13.7 percent from a year earlier, with debts of ¥979.02 billion, up 121.7 percent.
The Teikoku Databank report covers only failures filed in court and involving debts of ¥10 million or more.
The Japan Times
Wednesday, Nov. 12, 2008
