Japan Shaken by COVID-19... 200 Companies Already Bankrupt

Corporate Crisis Across All Regions of Japan... Increasing Speed of Bankruptcies

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The number of companies that have gone bankrupt in Japan due to the impact of the novel coronavirus infection (COVID-19) has been counted at 200.

According to the private credit research firm "Teikoku Databank" in Japan, as of the afternoon of the 1st, 200 companies have been identified as undergoing or preparing for legal procedures such as bankruptcy due to worsening conditions caused by decreased sales from COVID-19. The number increased to 100 on April 27, two months after the first bankruptcy case was discovered on February 26. Then, in just over a month, another 100 companies were added, accelerating the rate of increase.

By industry, the accommodation sector, including hotels and inns, had the highest number with 39 companies, as it was directly hit by the sharp decline in travelers. This was followed by restaurants (24 companies), and retail of clothing, miscellaneous goods, and footwear (16 companies). On the 15th of last month, the clothing company "Renown" became the first company listed on the Tokyo Stock Exchange First Section to apply for civil rehabilitation law (bankruptcy) at the Tokyo District Court.

By region, among the 47 prefectures nationwide, Tokyo had the highest number with 41 companies. Hokkaido and Osaka Prefecture were tied for second place with 17 companies each. Hyogo Prefecture followed with 13 companies.

Teikoku Databank stated, "Although the state of emergency was lifted nationwide last month, the outlook for economic recovery remains uncertain amid concerns of a resurgence of COVID-19," and predicted, "More companies will continue to close their businesses."