- Japan saw over 10,000 corporate bankruptcies in 2025, the highest number in 12 years.
- Rising raw material costs, worker shortages, and succession issues were key factors in the failures.
- Small businesses are expected to remain vulnerable to bankruptcies due to continued economic pressures.

A: Hey Hana! Did you hear any interesting news today?

B: Oh, hi Kenji! Not really. What’s up?

A: Well, apparently, lots of companies went bankrupt last year. Like, a *lot*.

B: Wow, seriously? How many?

A: Over ten thousand! It’s the most in twelve years. Can you believe it?

B: That’s crazy! What’s causing all this?

A: It seems like prices for everything went up. And it’s hard to find workers, too.

B: That's tough. Which industries are struggling the most?

A: Mostly services, like restaurants and shops. Also construction.

B: Oh no! But I thought the economy was doing okay…

A: It's a weird situation! The total debt actually *went down* overall.

B: Really? How is that possible?

A: Because a lot of the bankruptcies were from smaller companies. They often have less debt.

A: The experts think it will keep happening this year, especially for small businesses.

B: So, what can be done?

A: They're worried about minimum wage increases and finding enough people to work. It's a tricky situation!