Corporate Bankruptcies in May 2026 Fall Below Previous Year for First Time in Six Months

Teikoku Databank, Co., Ltd. has compiled and analyzed corporate bankruptcy data (for legal liquidation with liabilities of 10 million yen or more) for May 2026.

The number of bankruptcies was 771 (down 7.7% from 835 in the same month last year), marking the first year-on-year decrease in six months. The cumulative total for January-May 2026 is 4,307.

Total liabilities amounted to 111.248 billion yen (up 19.1% from 93.388 billion yen in the same month last year), rising for the third consecutive month. The largest liability was 16.2 billion yen by Toshin Holdings Co., Ltd.

By industry, all seven major sectors saw year-on-year declines. The service industry had the highest number of bankruptcies at 196, dropping below 200 for the first time in six months.

"Sales stagnation" was the primary cause for 627 bankruptcies, accounting for 81.3% of the total. Reorganization-type bankruptcies reached 27, the highest level for May in the last 10 years.