Centuries-Old Businesses in Japan Are Closing at a Record Pace
Rising input costs, labor shortages, and difficulties in finding successors are driving the country's long-established century-old companies to bankruptcy.
Long-established businesses with a history spanning a century in Japan are facing a record wave of bankruptcies and closures due to rising raw material costs, labor shortages, and shrinking domestic market dynamics.
Wave of Closures for Century-Old Companies
Long-established companies in Japan that have left a century behind are facing one of the greatest tests in their history under today's economic conditions. Experts state that shrinking domestic markets and deepening labor shortages lie at the root of this situation.
According to Teikoku Databank data, the number of bankruptcies among Japanese businesses with a history of more than 100 years broke a record in the first eight months of 2026, reaching 112.
Challenges Faced by Historical Brands
Kadoya Sesame Mills, a sesame oil producer founded in 1858, decided to delist from the stock exchange via an Integral-backed tender offer due to rising costs and geopolitical risks.
Meanwhile, Sube Shoten, a tofu maker founded in 1877 during the Meiji period, suspended its operations in May due to narrowing profit margins and increases in raw material prices.
Economic Pressures and Cost Increases
Rising costs and labor shortages in the post-pandemic business environment rank among the biggest obstacles for companies. According to Teikoku Databank, price-increase-related bankruptcies rose by 23.8 percent in the first half.
Bankruptcies stemming from labor shortages showed a 12.4 percent increase in the same period, reaching 227 cases.
Successor Crisis and Future Anxiety
Another major problem facing companies stands out as the difficulty of finding successors during intergenerational transitions. Bankruptcies due to insufficient heirs registered a 16.9 percent increase in the first half of the year compared to last year.
Experts state that the founders and boards of directors of family-owned businesses are forced to determine new strategies against inflation, tariffs, and rising interest rates.