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Coronavirus-linked biz failures top 200 in Japan

  • June 1, 2020
  • , Jiji Press , 10:26 p.m.
  • English Press

Tokyo, June 1 (Jiji Press)–The number of corporate bankruptcies related to the coronavirus crisis exceeded 200 in Japan on Monday.

 

The first coronavirus-related bankruptcy in the country, involving croquette maker Hokkaido Santomiya in the northernmost prefecture of Hokkaido, was confirmed on Feb. 26.

 

As of Monday afternoon, 202 business failures linked to the crisis had been confirmed. The accommodation sector had the largest number of such failures, at 39, as restrictions on the movement of people remain although the Japanese government’s state of emergency over the epidemic was fully lifted on May 25.

 

The restaurant sector followed, with 25 cases, while the number stood at 16 among clothing, sundry goods and shoes retailers.

 

Coronavirus-related bankruptcies have occurred in 39 of the country’s 47 prefectures. Tokyo had the highest number, at 45, followed by Hokkaido and the western prefecture of Osaka, with 17 cases each. Hyogo Prefecture, which neighbors Osaka, and Shizuoka Prefecture in central Japan saw 13 and 12 cases, respectively.

 

Many of the failed firms are believed to have been struggling since even before the outbreak, and drops in demand caused by the epidemic pushed them beyond breaking point.

 

While many of the companies were small enterprises, major firms have also been hit hard by the coronavirus crisis.

 

Renown Inc. <3606>, an apparel maker listed on the first section of the Tokyo Stock Exchange, filed for civil rehabilitation procedures under law on May 15, effectively going bankrupt. The company is set to be delisted in mid-June.

 

“Legal liquidations of large companies can trigger massive chain-reaction bankruptcies, so close attention should be paid,” an official of private credit research agency Teikoku Databank Ltd. said.

 

 

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