Japanese corporate bankruptcies fell for a ninth month in April as an economic recovery and government measures kept companies afloat.
Business failures slid 13.2 percent from a year earlier to 1,154 cases, Tokyo Shoko Research Ltd. said in Tokyo today.
Government lending programs have helped firms obtain access to credit as their sales plunged during the country’s worst postwar recession. The export-fueled rebound has begun to spread to smaller firms, which is also reducing the number of bankruptcies, according to economist Azusa Kato.
“Corporate profits are definitely improving, and we’re seeing a broadening of that recovery as well,” Kato, an economist at BNP Paribas in Tokyo, said before the report.
Sentiment among small and midsized firms gained for a fourth month in April, climbing to its highest level since 2007, according to a Shoko Chukin Bank survey published last month.
Even so, Takisou Co., a furniture retailer, filed for bankruptcy last month with 4.7 billion yen ($50 million) in liabilities.