Japan recorded 1,028 corporate bankruptcies in July, a 6.9 percent increase from a year earlier and the highest monthly tally since 2013, according to data from Tokyo Shoko Research. It marked the second consecutive month that filings exceeded 1,000. Total liabilities surged 41.4 percent to 236.3 billion yen, with small firms owing under 100 million yen accounting for nearly 80 percent of cases.
Bankruptcies driven by labor shortages hit a record 63 cases, while those linked to rising wages more than doubled year-on-year to 36. Price-driven failures reached 93 cases, extending an eight-month streak of year-on-year increases. The services sector bore the heaviest toll with 342 insolvencies, and information and communications firms saw a 62.5 percent spike.
The strain was acutely felt in northeastern Japan, where the six Tohoku prefectures logged 63 bankruptcies, a 57.5 percent jump and the second-highest July figure on record. Retailers in the region were hit hardest, with filings surging 66.7 percent.