The number of corporate bankruptcies in Japan in 2022 rose 6.6% from the previous year to 6,428, the first increase in three years, credit research firm Tokyo Shoko Research Ltd. said, Report informs via the Japan News.
Total liabilities left by failed companies increased 2.6% to ¥2.33 trillion ($18.12 billion), the first rise in five years, driven higher by the bankruptcy of auto parts maker Marelli Holdings Co., Tokyo Shoko said.
The data covered business failures involving liabilities of ¥10 million ($77,765) or more.
The number of companies that went bust due to higher prices surged 130% to 320, Teikoku Databank Ltd., another credit research firm, said.
Companies have been struggling with repayments of COVID-19 relief loans as well as soaring raw material prices.
The number of inflation-driven business failures shot up by between 160% and 300%, to 70 in the construction sector, 64 in the transportation sector and 34 in the retail sector.
A growing number of small and midsize companies have been facing difficulty passing on higher costs to clients in full.