Bankruptcy due to Corona Virus impact More than 500 companies likely next week Credit research firm

Bankruptcy due to the influence of the Corona Virus There is a possibility of more than 500 companies next week Credit research company September 4 18:02

A total of 489 companies have gone bankrupt due to the new coronavirus, and there could be more than 500 as early as next week. There is also a survey that the number of small and medium-sized enterprises that are forced to consider going out of business will increase if the impact is prolonged, and there are concerns about the impact on the local economy.
According to the private credit reporting firm Imperial Data Bank, a total of 489 companies went bankrupt due to bankruptcy and other legal proceedings due to the new coronavirus, and companies that stopped their operations and prepared for legal arrangement by 4 p.m. on April 4.

By industry, there were 69 restaurants, followed by 53 hotels and ryokans, and 33 apparel retailers.

The number of bankruptcies is increasing at a rate of one day, and research firms say there is a possibility of more than 500 companies as early as next week.

On the other hand, another credit research firm, Tokyo Shoko Research, points out that there is a possibility that not only bankruptcies but also small and medium-sized enterprises will go out of business in the future, and there are concerns about the impact on the local economy.

According to a survey of approximately 9,600 small and medium-sized enterprises nationwide from July to last month, 8.5% of companies said that they might consider going out of business if coronas were converging for a long time.

It is said that there are a total of 3.58 million small and medium-sized enterprises in Japan, and this credit research firm analyzes that simple calculations show that more than 300,000 small and medium-sized enterprises are on the verge of going out of business.

Research firm “Financial institutions support ‘accompanied type'”

Regarding this survey, Mr. Mihiro Harada, Director of Information at Tokyo Shoko Research, said, “We see this as a shocking result. With the impact of the new coronavirus on long-standing challenges such as a shortage of successors, the number of small and medium-sized business owners looking to go out of business is increasing.”

On top of that, he said, “The current measures, such as supporting the cash flow of small and medium-sized enterprises, have been effective, but for example, it is ‘blood transfusion’, and it is necessary to close the “wound” that drips through the deficit. Local financial institutions are required to support the “accompanied type” of thinking together about the management of small and medium-sized enterprises, including the conversion to a business style that meets the new lifestyle.”

The taste line maker who cannot help thinking about going out of business

It is a taste line manufacturer “Tokyo Japanese musical instrument” in Hachioji City, Tokyo.
It was founded in 18th year of Meiji.
We have also produced many symisens used by professional musicians and supported traditional Japanese performing arts such as kabuki and Bunraku.

At the factory, 17 craftsmen use 135 different machines to shape the wood used as a material, and finally, they are carefully finished by hand.

There are as many as 20 processes to polish the part called “Sao” that decides the workmanship, and it takes about three days for even skilled craftsmen to finish it.
It is said that it takes at least ten years to become a skilled craftsman.

However, we are now faced with a situation where we have no choice but to go out of business.

The reason is that the order has decreased sharply due to the spread of the infection of the new coronavirus, the concert is canceled across the house, and the retail store is closed.
In April and May, new orders and repair requests were almost gone.

Originally, orders tended to decline, and sales, which used to be 15 million yen a month, had decreased by less than half to about 6 million yen.
The impact of the new coronavirus overted the new coronavirus, and manager Katsuhiro Kojima, 80, said he thought he had no choice but to go out of business for a while.

However, since then, orders have been received one after another from business partners who have learned that they may go out of business, and there have been calls for support, such as a letter from an elementary school boy that says, “I want to help even a little.”

Mr. Daisuke has put off the time of going out of business to respond to additional orders.
Even so, while the convergence of infection is not visible, we think that it is inevitable that it will eventually go out of business.

Mr. Daisuke said, “We have received feedback and want to continue the company, but if we don’t place an order, we can’t do our best. I’m really worried every day.”

New Initiatives for Shinkin Central Bank

Like Tokyo Japanese musical instruments, there are many small and medium-sized enterprises that have excellent technology.
Therefore, if the business goes out of business one after another, valuable technological capabilities that have supported Japan’s growth will be lost, and it will also be a blow to the local economy.

In this situation, the sense of crisis is strengthened by the credit banks in various regions that have continued to run in a community-based way.

The national organization Shinkin Chuo Bank has started a new initiative to support the continuation of small and medium-sized enterprises’ businesses.

Partnering with companies that mediate acquisitions and mergers on the Internet.

We started in April with a system to connect small and medium-sized business owners who are considering going out of business with managers who want to take over the business through internet sites and to continue their business.

On behalf of a small business owner, a sales representative of the Shinkin Bank registers information on the site and negotiates with the receiving party.

However, there are many elderly managers of small and medium-sized enterprises, and there are many people who are resistant to publishing information on the site.

These companies are persistently encouraging credit union sales representatives to post information, asking if they should look for a buyer rather than just going out of business, and the number of companies that post it little by little is increasing.

As the impact of the new coronavirus is prolonged, companies that operate the site, such as Shin-Kin-Kin, have decided to strengthen their efforts, such as holding online consultation meetings for small and medium-sized enterprises in rural areas, as there is a possibility that more managers will consider going out of business in the future.

Kazuo Yamaguchi, president of Shinshin Capital, a subsidiary of Shin-Kin,” said, “Going out of business is not just a matter of management. It also affects the local economy and is seen as a matter of life and death for the region. We want to make use of the nationwide network of money to stop even one company from going out of business.”