Bankruptcies have increased for the 9th straight month. Corporate failures rose 10% in February and liabilities increased 230% to 1.22 trillion yen. Seven listed companies have failed, the highest since October 2008.
Failed companies include SFCG and Japan General Estate Co. The construction industry had an 8% increase in failures, real estate had a 51% increase, manufacturers had 36% increase, and wholesalers had an 11% increase.
The government’s October 2008 loan guarantee program played a role in ameliorating bankruptcies among small and midsize businesses that had between JPY 5-10 million in capital. On the other hand corporate failures with capitalizations of JPY 10-50 million increased by 12%.
Total bankruptcies this year are numbered around 14,600 companies, making 2008 perhaps the highest in six years.
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