Japanese corporate failures hit 6-year record high in Jan

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TOKYO, Feb. 9 Kyodo -
The number of corporate bankruptcies in Japan jumped 15.8 percent in January
from a year earlier to 1,360, the eighth straight monthly rise and topping the
1,300 mark in the month of January for the first time in six years, a private
research agency said Monday.
Debts left by failed firms rose 44.3 percent from a year earlier to 838.99
billion yen for the fifth straight monthly increase and a six-year high for the
month, according to Tokyo Shoko Research.
Corporate bankruptcies posted a double-digit increase for the second straight
month, showing no signs of touching bottom.
A Tokyo Shoko Research official said, ''Poor effects by the government's
measures to help smaller companies raise funds may have boosted the number of
corporate bankruptcies.''
By industry, seven of the 10 sectors saw increases in bankruptcies, with those
in the manufacturing industry rising 37.9 percent to 233 cases and topping the
200 mark in the month for the first time in six years. Among them were 12 cases
related to output reduction by automakers and other major manufacturers.
Bankruptcies in the real estate sector totaled 66, up 32 percent and exceeding
the 60 mark in the month for the first time in 16 years.
The largest liabilities were 78.5 billion yen posted by bankrupt real estate
investment firm Creed Corp., based in Tokyo. Sapporo-based department store
Marui Imai Inc. also went bust with liabilities totaling about 50.2 billion
yen, signifying depressed consumer spending.
Bankruptcies accompanied by liabilities of at least 10 billion yen soared to
16, up from seven in the same month last year.
Four exchange-listed companies went bust in January.
In fiscal 2008 starting last April, the number of failures by listed companies
came to 35, already exceeding fiscal 2002's 22, hitting a postwar record high.
Of the 35 failures, real estate and construction firms accounted for 25.
The Tokyo Shoko Research figures cover bankrupt firms with debts of 10 million
yen or more.
Separately, Teikoku Databank, another private research firm, said corporate
failures totaled 1,156 in January, up 30.2 percent from a year earlier, with
liabilities totaling 864.40 billion yen, up 122.2 percent.
==Kyodo
2009-02-09 20:52:39