Teikoku Databank has compiled and analyzed data on corporate bankruptcies in the first half of 2026 (legal liquidations with liabilities of 10 million yen or more).

Overview and Key Points

In the first half of 2026, bankruptcies totaled 5,335 cases (up 6.6% from 5,003 cases in the same period last year), an increase of 332 cases year-on-year, marking the fourth consecutive year of increase. This marks the second consecutive year that the first-half total has exceeded 5,000 cases, remaining at a high level. One listed company went bankrupt: Tosshin Holdings Co., Ltd. (listed on TOKYO PRO Market).

Total liabilities amounted to 724.736 billion yen (up 6.9% from 677.687 billion yen in the same period last year), exceeding the previous year for the first time in four years for the first half of the year. Bankruptcies with liabilities "less than 50 million yen" accounted for 62.2% of the total, marking the second consecutive year that this proportion has exceeded 60% for the first half.

By industry, six out of the seven major industries saw an increase compared to the previous year. The "Service Industry" (1,418 cases, up 6.7% from 1,329 cases in the same period last year) had the highest number of bankruptcies, setting a new record since 2000. This was followed by the "Retail Industry" (1,108 cases, up 2.8% from 1,078 cases), which exceeded 1,000 cases for the third consecutive year.

By region, eight out of the nine regions saw an increase compared to the previous year. The "Kanto" region had the highest number of cases (1,778 cases, up 5.0% from 1,694 cases in the same period last year). In contrast, the "Tohoku" region, the only one to see a decrease (234 cases, down 25.5% from 314 cases), had all six prefectures with fewer bankruptcies than the previous year for the first time in five years.

"Bankruptcies after zero-zero (COVID-19) loans" totaled 256 cases, a decrease for the second consecutive year.

"Labor shortage bankruptcies" totaled 227 cases, setting a new record high.

"Successor difficulty bankruptcies" totaled 312 cases, setting a new record high.

"Price hike bankruptcies" totaled 556 cases, significantly surpassing the previous record high.

Reporting Period: January 1, 2026 - June 30, 2026

Release Date: July 8, 2026

Scope: Bankruptcies with liabilities of 10 million yen or more, through legal liquidation.

Next release date is scheduled for August 10 (Mon) at 1:30 PM.

Six out of Seven Major Industries Exceed Previous Year; "Service Industry" Hits Record High Since 2000

By industry, six out of the seven major industries saw an increase compared to the previous year. The "Service Industry" (1,418 cases, up 6.7% from 1,329 cases in the same period last year) had the highest number of bankruptcies, setting a new record since 2000. This was followed by the "Retail Industry" (1,108 cases, up 2.8% from 1,078 cases), which exceeded 1,000 cases for the third consecutive year. The "Construction Industry" (1,043 cases, up 5.8% from 986 cases) surpassed 1,000 cases for the first time in 13 years in the first half of the year. The "Transportation and Communications Industry" (231 cases, up 18.5% from 195 cases) exceeded the previous year for the first time in two years in the first half of the year.

Looking at specific sectors, within the "Service Industry," "Advertising, Research, and Information Services" (489 cases in the same period last year, up from 450) was the most frequent. In the "Retail Industry," "Restaurants" (473 cases, up from 458) set a new record high since 2000. In the "Construction Industry," "Specialty Contracting" (522 cases, up from 463) exceeded 500 cases for the first time since 2012 (565 cases) in the first half of the year, marking 14 years.

"Sluggish Sales" Total 4,278 Cases, Accounting for 80% of Total for Third Consecutive Year

By primary cause, "sluggish sales" were the most frequent at 4,278 cases (up 3.9% from 4,117 cases in the same period last year), accounting for 80.2% of the total. This marks the third consecutive year that the proportion has exceeded 80%. The total number of "recession-type bankruptcies," including "difficulty in collecting accounts receivable" (32 cases, up 128.6% from 14 cases), was 4,350 cases (up 4.5% from 4,163 cases), exceeding the previous year for the fifth consecutive half-year period.

"Illness or death of management" (205 cases, up 25.0% from 164 cases in the same period last year) was the highest since 2000 for the second consecutive year. In addition, "lax management" (87 cases, up 3.6% from 84 cases) and "other management plan failures" (114 cases, up 7.5% from 106 cases) increased compared to the previous year.

* "Recession-type bankruptcies" are compiled to include sluggish sales, export stagnation, difficulty in collecting accounts receivable, accumulation of bad debts, and industry stagnation.

"Bankruptcy" Cases Reach 4,981, Exceeding Previous Year for Fifth Consecutive Half-Year Period

By type, the total number of "liquidation-type" bankruptcies was 5,158 cases (up 5.8% from 4,876 cases in the same period last year), accounting for 96.7% of the total. "Reorganization-type" bankruptcies occurred 177 times (up 39.4% from 127 cases).

Within "liquidation-type" bankruptcies, "bankruptcy" was the most frequent at 4,981 cases (up 6.0% from 4,698 cases in the same period last year), exceeding the previous year for the fifth consecutive half-year period. "Special liquidation" cases totaled 177 (down 0.6% from 178), falling below the previous year for the first time in three years. Within "reorganization-type" bankruptcies, "Civil Rehabilitation Act" cases occurred 169 times (up 36.3% from 124 cases), with 138 individual and 31 corporate cases. "Corporate Reorganization Act" cases, including K.K. Kizuna Holdings and three affiliated companies, numbered 8 (up 166.7% from 3 cases), of which 3 were small-scale corporate reorganizations.

Liabilities "Less Than 50 Million Yen" Account for 62.2%, Exceeding 60% for Second Consecutive Year

By liability size, bankruptcies with liabilities "less than 50 million yen" totaled 3,320 cases (up 4.9% from 3,164 cases in the same period last year), accounting for 62.2% of the total. This marks the second consecutive year that this proportion has exceeded 60% for the first half of the year. This is the first time in 18 years since 2008 that all size categories have seen an increase compared to the previous year.

By capital size, bankruptcies with "individuals + less than 10 million yen" were the most frequent at 3,875 cases (up 8.3% from 3,578 cases in the same period last year), accounting for 72.6% of the total, the highest proportion for the first half of the year since 2000.

"Emerging Companies" Total 1,533 Cases, Exceeding Previous Year for Second Consecutive Half-Year Period

By business history, companies with "30 years or more" were the most frequent at 1,657 cases (up 5.0% from 1,578 cases in the same period last year), accounting for 31.1% of the total. Among these, 78 bankruptcies of long-established companies (100 years or more in business history) occurred (up 27.9% from 61 cases). Companies with "less than 15 years" totaled 783 cases (up 17.7% from 665 cases), the highest in the past 15 years.

"Emerging companies" with less than 10 years of business history ( "less than 3 years" (202 cases, up 8.0% from 187 cases in the same period last year), "less than 5 years" (354 cases, up 8.3% from 327 cases), "less than 10 years" (977 cases, down 2.0% from 997 cases)) totaled 1,533 cases (up 1.5% from 1,511 cases in the same period last year), exceeding the previous year for the second consecutive half-year period. By industry breakdown, "Service Industry" (528 cases, up 3.1% from 512 cases) was the most frequent, followed by "Retail Industry" (364 cases, up 0.3% from 363 cases) and "Construction Industry" (277 cases, down 9.8% from 307 cases).

Eight Out of Nine Regions Exceed Previous Year; 34 Prefectures Increase Year-on-Year

By region, eight out of the nine regions saw an increase compared to the previous year. The "Kanto" region had the highest number of cases (1,778 cases, up 5.0% from 1,694 cases in the same period last year). In contrast, the "Tohoku" region, the only one to see a decrease (234 cases, down 25.5% from 314 cases), had all six prefectures with fewer bankruptcies than the previous year for the first time in five years.

The "Hokuriku" region saw the highest growth rate (218 cases, up 40.6% from 155 cases), reaching the 200-case mark for the first time since 2009 (266 cases) in the first half of the year. Notable increases were seen in "Ishikawa" (45 cases, up from 31) and "Niigata" (76 cases, up from 54). The "Chubu" region (712 cases, up 8.9% from 654 cases) exceeded 700 cases for the first time in 13 years since 2013 (805 cases) in the first half of the year.

Out of 47 prefectures, 34 saw an increase compared to the previous year.

Future Outlook

Fourth Consecutive Increase and Second Consecutive Year Exceeding 5,000 Cases for the First Half

Corporate bankruptcies in the first half of 2026 totaled 5,335 cases, up 6.6% from the previous year (5,003 cases). This marks the fourth consecutive increase and the second consecutive year exceeding 5,000 cases for the first half. Looking at the monthly trend, only May saw fewer bankruptcies than the previous year. In June, there were 1,028 cases (869 cases last year), exceeding 1,000 cases for the first time in approximately two years since May 2024.

Total liabilities amounted to 724.736 billion yen (677.687 billion yen last year), an increase of 6.9% from the previous year. The top liability was 33.293 billion yen from Fukushima Kensetsu Shizai Co., Ltd. (Tokyo, bankrupt in February), which was involved in fundraising for the "Drone Net" group. In addition, several large-scale bankruptcies made headlines, including Tosshin Holdings Co., Ltd. (liabilities of 16.2 billion yen, Aichi, corporate reorganization in May), the first listed company bankruptcy this year, and Jupiter Coffee Co., Ltd. (liabilities of 5.903 billion yen, Tokyo, civil rehabilitation in January). Furthermore, an increase of 26 cases in the "1 billion yen to less than 5 billion yen" liability category to 108 cases (from 82 last year) also contributed to the rise in total liabilities.

Price Hike Bankruptcies Significantly Surpass Previous Record High

The background to the increase in bankruptcies includes the impact of price hikes. In June, price hike bankruptcies reached 113 cases, surpassing April's 108 cases and setting a new monthly record. In the first half of the year, 556 cases occurred, also a record high for a half-year period. While there is a mood of easing tensions regarding the Middle East situation with a ceasefire agreement leading to a drop in crude oil prices, it will take time for oil refining and distribution volumes to normalize. Therefore, price increases are expected to continue for food products and petrochemicals, and price hike bankruptcies are likely to remain at a high level. Although no bankruptcies directly caused by the worsening Middle East situation had occurred as of the end of June, a cumulative total of 4 cases have occurred where the Middle East situation exacerbated pre-existing difficult business conditions, leading to legal liquidation.

The historical depreciation of the yen is contributing to these persistently high prices. Although the Bank of Japan decided to raise its policy interest rate from 0.75% to 1% at its June monetary policy meeting, a level not seen in 31 years, it has not been enough to halt the yen's depreciation. Yen depreciation bankruptcies totaled 40 cases in the first half of the year, and it is highly likely that this number will increase further over time due to rising import prices.

Risk of Increased Bankruptcies Continues in the Second Half of the Year

According to the TDB Business Sentiment Survey (June), the Business Conditions DI increased by 1.0 point from the previous month, improving for the second consecutive month. Positive factors include the continued strength in semiconductors and generative AI-related industries, and expectations for the resolution of the Middle East situation, driving the economy primarily by "large corporations." In contrast, the business sentiment of "small and medium-sized enterprises (SMEs)," which are less price-competitive, remains low amid continued price increases, and the improvement lacks strength.

Amidst this situation, further increases in the policy interest rate are anticipated. Regarding the impact of rising interest rates, a survey by Teikoku Databank on the "Impact of the Bank of Japan's Additional Interest Rate Hike on Businesses" (December 2025), conducted among approximately 100,000 companies nationwide, estimated that 3.3% of companies would fall into ordinary deficit if the policy rate were raised to 1.0%, and 6.1% if raised to 1.5%. For SMEs with weak profitability and substantial financial debt, the difficulty in managing cash flow is likely to increase. Against the backdrop of a shift to an inflationary economy, rising various costs, labor shortages, and consumers' saving tendencies intensifying competition among businesses, the trend of increasing bankruptcies is expected to continue in the second half of the year, primarily among SMEs that have not recovered their performance.

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  • Source: PR TIMES
  • Category: 経済