1000 businesses in Japan dragged into bankruptcy

TOKYO, JAPAN - APRIL 2020 : View around Shinjuku Kabukicho area.

1,000 Japanese companies face bankruptcy as COVID-19 impact numerous businesses especially restaurants affected by faster closing time.

According to research estimates, the restaurant business is the most affected with 182 bankruptcies, followed by 83 in the construction sector and 62 hotels and accommodations.

Additionally, 84,773 people lost jobs by the service sector unemployed 11,463. The service sector was most affected because the number of foreign tourists has shrunk drastically.

When divided by province, there are 247 bankrupt businesses in Tokyo, followed by 94 in Osaka, and 55 in Kanagawa.

Many businesses can sustain themselves because of loans granted by the government. However, the bankruptcy may increase as banks will hesitate to lend further as many companies cannot restore their core businesses.

Meanwhile, Japan’s parliament set a law to impose fines for individuals and businesses who don’t follow the rules with the restrictions to prevent the spread of the virus.

Allowing officials to fine bars and restaurants that refuse to close by 8:00 p.m. in 10 prefectures.

Covid patients resisting hospitalization can be fined up to 500,000 yen restaurants and bars that fail to cooperate with orders to reduce their operating hours can be fined up to 300,000 yen.