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166562
Tue, 03/08/2011 - 14:42
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https://www.oananews.org//node/166562
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Business failures in Japan fall 9% in Feb., debts dip 7%
TOKYO, March 8 Kyodo - The number of corporate bankruptcies in Japan slipped 9.4 percent from a year earlier to 987 in February, the 19th straight month of fall, as government financial aid apparently kept many businesses afloat, a credit research agency said Tuesday.
The debts left by the failed firms dipped 6.5 percent to 410.19 billion yen, a fall for the fourth straight month, according to Tokyo Shoko Research.
The law to improve credit conditions at small and midsize companies has kept such businesses from going under, as did the government's emergency system to guarantee loans to troubled businesses, it said.
It is the first time in five years and five months that the monthly number of failures stopped short of reaching the 1,000-company line, it noted.
By industry sector, failures of retailers rose for the third consecutive month to 132, while those of wholesalers rose for the second straight month to 145.
Major bankruptcies accompanied by debts of 10 billion yen or more totaled three.
But companies that went under with debts of less than 100 million yen accounted for 66.9 percent of total corporate failures, indicating continuing tough going for smaller businesses.
Of the total, 83.2 percent went belly-up due to sluggish sales, marking the 13th straight month that the percentage of such firms exceeded the 80 percent line.
Teikoku Databank, another private credit research agency, said the number of companies that went bankrupt in February increased 8.5 percent to 884, with their debts totaling 391.98 billion yen, down 8.3 percent.
The surveys by the two research agencies cover failures of businesses with 10 million yen or more in debts. The report by Teikoku Databank covers only corporate failures filed with courts.
The debts left by the failed firms dipped 6.5 percent to 410.19 billion yen, a fall for the fourth straight month, according to Tokyo Shoko Research.
The law to improve credit conditions at small and midsize companies has kept such businesses from going under, as did the government's emergency system to guarantee loans to troubled businesses, it said.
It is the first time in five years and five months that the monthly number of failures stopped short of reaching the 1,000-company line, it noted.
By industry sector, failures of retailers rose for the third consecutive month to 132, while those of wholesalers rose for the second straight month to 145.
Major bankruptcies accompanied by debts of 10 billion yen or more totaled three.
But companies that went under with debts of less than 100 million yen accounted for 66.9 percent of total corporate failures, indicating continuing tough going for smaller businesses.
Of the total, 83.2 percent went belly-up due to sluggish sales, marking the 13th straight month that the percentage of such firms exceeded the 80 percent line.
Teikoku Databank, another private credit research agency, said the number of companies that went bankrupt in February increased 8.5 percent to 884, with their debts totaling 391.98 billion yen, down 8.3 percent.
The surveys by the two research agencies cover failures of businesses with 10 million yen or more in debts. The report by Teikoku Databank covers only corporate failures filed with courts.
