The number of corporate bankruptcies in Japan topped 10,000 in 2025 for the first time in 12 years.
A survey by credit research firm Teikoku Databank shows 10,261 companies went under last year, up 3.6 percent from 2024. They each had debts of at least 10 million yen, or about 63,000 dollars.
This marks the fourth consecutive year that the number has exceeded the previous year's and the first time since 2013 that it has topped 10,000.
Companies going bankrupt due to soaring prices of raw materials and supplies as well as shortages of workers and successors stood out.
The service industry had the largest number of bankruptcies at 2,648, followed by the retail sector with 2,193 and the construction industry with 2,021.
While the overall number of bankruptcies increased, the total amount of debt declined nearly 30 percent from the previous year to over 1.5 trillion yen, or about 9.5 billion dollars. This reflects an increase in bankruptcies of small companies.
The credit research firm said that rising prices and labor shortages are expected to continue causing bankruptcies this year, mainly among small businesses.
It said the key point to watch is to what extent they can cope with an expected minimum wage increase and secure manpower.

Quiz 1:
What was significant about the number of corporate bankruptcies in Japan in 2025?
A. It was the lowest number in 12 years.
B. It topped 10,000 for the first time in 12 years.
C. It decreased compared to 2024.
D. It was the highest number ever recorded.

Quiz 2:
According to Teikoku Databank, what was a major contributing factor to the increase in corporate bankruptcies?
A. A decrease in raw material prices.
B. An abundance of available workers.
C. Soaring prices of raw materials and supplies.
D. Increased government subsidies for businesses.

Quiz 3:
Which industry experienced the largest number of bankruptcies in 2025?
A. Service industry
B. Retail sector
C. Construction industry
D. Manufacturing sector

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A