Tokyo Shoko Research(-TRS-), one of Japanese research firms who have been releasing research data regarding the financial performance of small to middle companies in Japan. TRS has just opened research of “Influence of COVID-19”.
One of the questions asks “What is your company’s outlook of the payments for the debt funded as the support program?” Then almost twenty percent of participants of the survey responded, “Very much concerned.” The below is the breakdown of the twenty percent by industries.
Restaurant and hotels are top two categories. This means that over short to middle term, even though the COVID risk seems to get less, there may be a risk of bankruptcy.
A friend of mine, who has been running a famous French restaurant chain, recently showed his concern about the debt payment. He is also the next generation leader of his family business and mentioned that it seems to be quite difficult to increase retained earnings while paying all the debts accumulated during COVID.
In conclusion, this survey demonstrated a sort of future risk of economic down turn. It may be the time for us to prepare for future.
Further queries or doubts, please email to ytomizuka@abrilsjp.com
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