Twenty companies with liabilities of 10 million yen or more in Tokyo went bankrupt due to the spread of the new coronavirus, Teikoku Databank Ltd. announced on Monday. The number rose sharply from zero in February and three in March.
Two large-scale bankruptcies with debts of more than 5 billion yen occurred for the first time in four months, including a Japanese subsidiary in Minato Ward of Cath Kidston, a British sundries brand popular for flower pattern designs, according to the announcement. The company had opened stores at large commercial facilities in various parts of the country. There is no prospect, however, to continue its business due to the series of commercial facilities being temporarily closed. The debt stood at 6.5 billion yen.
Of the 20 bankruptcies and three business suspensions reported in April, five, the highest figure, were hotel companies, followed by three each for apparel business and sundries retail stores and restaurant businesses. More bankruptcies are expected if the government's request to stay home and temporarily close places continues, according to sources.
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