Bankruptcies of Japanese Textile & Apparel Firms Sharply Increase in April

According to the Credit Exchange Agency, Osaka, the bankruptcies of textile and apparel firms throughout Japan (liabilities of 1 billion yen or over and including firms being wound up and voluntarily liquidated) numbered 34 cases in April 2020, which is 3 cases more than the previous month and 13 cases more than the year before.
Liabilities amounted to 13,007 million yen, up 2,105 million yen and 10,917 million yen, respectively.
Large-scale bankruptcies exceeding 1 billion yen included three companies. Nearly seventy percent of the bankruptcies had liabilities of 100 million yen or less. Bankruptcies caused by a sudden change in business conditions by the coronavirus pandemic are increasing.
Retailers accounted for 21 of the bankruptcy cases, apparel makers and wholesalers for 4 cases, and other businesses for 3 cases.
Sagging business was given as the cause of bankruptcy for 27 of the cases.

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