TOKYO: The number of corporate bankruptcies involving liabilities of at least 10 million yen in Japan jumped 25.7 percent from a year earlier to 953 in July, up for the 28th consecutive month, Tokyo Shoko Research Ltd. said Thursday.

Bankruptcies increased among small and midsize companies as they struggled to reflect higher costs in prices amid inflation.

Liabilities left by failed companies totaled 781.2 billion yen, up about 4.8-fold. The total was pushed up by the collapse of MSJ Asset Management Co., formerly Mitsubishi Aircraft Corp., with liabilities of 641.3 billion yen.

The service sector saw 310 business failures, up 18.3 percent and hitting a record high. Many of the failed companies were restaurant operators and medical and welfare service providers.

The number of inflation-linked bankruptcies jumped 18.9 percent to 69, with many of them in the construction and manufacturing industries.

Tokyo Shoko Research predicted that bankruptcies could increase this autumn or later as borrowing costs are expected to rise after the Bank of Japan raised its policy interest rate last week.

JIJI Press