Tokyo Shoko Research announced on the 6th that the number of corporate bankruptcies (with total debt of 10 million yen or more) in the two and four Kinki prefectures in November was 227, an increase of 0.4% from the same month last year. The total from January to November was 2,355 cases, exceeding the 2,206 cases until December of the previous year. “The difficult situation continues as the effects of labor shortages and high prices put pressure on small and medium-sized enterprises with weaker physical strength,” the analysis said.

Total debt in November was 22.3 billion yen, an increase of 26.3%. By industry, restaurant bankruptcies increased. Although the number temporarily started to decline around summer due to price pass-through measures, it was affected by chronic labor shortages. Food and beverage-related industries, including retail and manufacturing, continued to struggle, with an increase of 11 cases to 48.

Against the backdrop of the expected impact of high tariff policies in the United States and rising interest rates, “it is necessary to closely monitor the trends of companies with excessive debt during the year-end and New Year period when they need funds.”