Around 200 companies have gone bankrupt in Japan over the past three months due to the influence of Corona 19.
According to NHK, the main reason was decrease of sales. Data Bank, a private credit research company, stated that 134 companies take legal steps to wrap up their businesses. This is all the impact of the coronavirus outbreak. And 66 companies have suspended their businesses and started preparing for legal cleanup.
The industry that receives the greatest impact is the tourism industry. Because there are 39 hotels and inns among those on the bankrupt list. Followed by 24 restaurants, including bars, and 16 women’s clothing, shoes and miscellaneous goods companies.
Data Bank explained that the first hundred companies went bankrupt in the first two months of Covid-19 outbreak. But later it took about a month to reach 200, accelerating the pace of the growth of bankrupt companies.
Not in the verge of bankrupt, other companies in Japan are reexamining their supply chain
According to a survey by the Nikkei Asian Review on the 1st, 72.1 percent of 132 major companies with factories in Japan said they need to review their supply chains.
The survey went from the 25th to the 28th of last month when the emergency declaration was completely lifted. It allows multiple responses to one question.
As for the method of reexamination, 65.3% said, “We can flexibly change the supplier’s location in response.” 57.1 percent of respondents said they will focus on the distribution of the supply chain to certain countries.
When asked about the Corona 19 measures being implemented at the factory, 75.0% of the respondents said “heat inspection” and 60.2% said, “Reviewing the distance between (manufacturing) lines and workers.”
Corona 19 also shows a change in the way they work. In particular, companies that “continue to telework” accounted for 90.9 percent of the total. Among them, 39.1 percent said they would conduct telework for 50 percent of all employees. Sixty-three.2 percent of the companies said they are targeting more than 50 percent of the employees, including 4.6 percent of the respondents. 89.4 percent said they are introducing a time difference and flexible work system.