Coronavirus bankruptcies in Japan reach 1,200

A credit research firm says 1,200 companies in Japan have gone bankrupt since February last year due to the impact of the coronavirus pandemic.

Teikoku Databank says the figure covers enterprises and private business owners that filed for bankruptcy, or suspended business activities to begin legal liquidation procedures.

Bars and restaurants topped the list of industries with 195 cases, followed by construction firms at 104, and hotels and inns at 84.

By prefecture, Tokyo had 287 bankruptcies, Osaka had 113 and Kanagawa 69.

Teikoku Databank says that although the coronavirus state of emergency has been lifted, bars and restaurants are asked to continue operating for shorter hours, so it is unlikely their sales will show a sharp recovery.

The research firm warns that more companies could go bankrupt if financial support programs end for businesses that comply with the requests for shorter hours.