Japan: 140 more businesses bankrupt due to pandemic

(Patria) – The coronavirus epidemic in Japan has led to the bankruptcy of more than 140 small businesses in the country in just three months, and this number is expected to grow.

These are mainly small tourism and hospitality businesses, although all others that had to cease operations due to the eruption of the infection and accompanying emergency measures are also at risk – from construction companies, music schools to funeral homes.

Among the bankrupt companies are a large number of those that already had problems with declining revenues due to the labor shortage and last year's tax increase, and the coronavirus was just the 'last straw'.

In April alone, 743 companies went bankrupt, and 71 such cases are directly related to the epidemic. This number was 645 in April of last year.

Prime Minister Shinzo Abe's government declared a state of emergency last month in response to the epidemic and approved a financial aid package for businesses and individuals.

This financial stimulus is expected to be distributed soon to allow businesses to 'breathe easier' after efforts to pay salaries and cover costs during the shutdown.