The "stability of long-established businesses" is fading, and traditional industries are disappearing
There has been an increase in the number of world-renowned "long-established Japanese companies" closing down. In the first half of 2024 (January to June), there were 74 cases of "long-established companies" with a history of over 100 years since their founding or establishment. This is roughly double the number from the same period last year, and is the highest number ever for the first half of the year.
Japan is home to over 40,000 long-established companies, with approximately 2,000 companies joining the ranks of century-old businesses each year, making it one of the world's leading countries in terms of long-established businesses. There is much to learn from the strengths of these long-established companies, which have overcome numerous disasters and changes in demand and maintained their enterprising spirit while continuing their business for over 100 years. However, there are a growing number of cases where these long-established companies have been swallowed up by rapidly changing economic conditions, putting the true strength of these long-established companies to the test.
<Survey results (summary)>
By industry, manufacturing and retail account for the majority, but traditional industries such as sake brewing and fresh confectionery manufacturing are also included.
The image of "long-established businesses = safe and secure" is changing, and unexpected closures due to compliance violations
*Bankruptcy of a long-established company: Refers to a company that has been legally liquidated (bankrupt) and has been founded or established for over 100 years.
*The survey results are also published on the following website
By industry, manufacturing and retail account for the majority, but traditional industries such as sake brewing and fresh confectionery manufacturing are also included.
The number of bankruptcies of long-established companies in the first half of 2024 (January to June) reached 74, double the 38 cases in the same period last year. This is the highest number since statistics began being kept in 2000, and is a record number.
Breaking down the cases by industry, manufacturing was the most common with 22 cases. In addition to traditional Japanese industries such as sake brewing (2 cases) and fresh confectionery manufacturing (2 cases), there were also seafood processing, miso, and vegetable pickles. Retail came in second with 21 cases. Similar to manufacturing, traditional industries were identified, including supermarkets, kimono and fabric retailers, and department stores. Both industries accounted for approximately 60% of the total. Additionally, there were two inn businesses in the service industry, but both have been transferred to new companies and continue as businesses.
The image of "long-established businesses = safe and secure" is changing, and unexpected closures due to compliance violations
Amid a significant increase in the number of bankruptcies, last year saw a succession of bankruptcies among long-established companies that were thought to be "safe." Shiraimatsukiki (Chuo-ku, Osaka), founded in 1872 and with a 150-year history, was a well-known manufacturer and distributor of medical and scientific instruments. However, in September 2023, it suddenly filed for civil rehabilitation. This was due to the discovery of more than 20 years of window dressing, and it caused consternation in the industry. Furthermore, Proroot Marumitsu (Chuo-ku, Osaka), founded in 1900 and engaged in the manufacture and sale of textile fabrics for clothing, was listed on the Standard section of the Tokyo Stock Exchange at the time, but after multiple suspicions arose, including the discovery of fraudulent receipt of employment adjustment subsidies, it ultimately filed for corporate reorganization and sought restructuring.
While a long history of business is a significant indicator of trustworthiness, it is important not to overlook the fact that compliance violations such as these may also be lurking.In addition, among the bankruptcies of long-established companies in the first half of 2012 (74 cases), several bankruptcies have been confirmed in recent years due to factors that have been cited as risks to business continuity, such as "high price bankruptcies" (14 cases) where profits have deteriorated due to rising purchase prices, and "successor difficulties bankruptcies" (11 cases) where the lack of a successor has made it impossible to continue the business, and long-established companies are no exception.
Considering that the total number of corporate bankruptcies in 2024 is expected to exceed 10,000, long-established companies, nearly half of which are small businesses, may face even more difficult times in the future.
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