Nolboo Files for Court Receivership Amid Soaring Losses Despite 120 Billion Won in Sales

Nolboo, a first-generation Korean restaurant franchise famous for budae-jjigae (sausage stew) and bossam (boiled pork), has reportedly applied for corporate rehabilitation procedures with the court following financial difficulties.

Experts analyze that the worsening financial condition was the primary cause, with operating losses surging to 8.7 billion won last year and the capital impairment rate exceeding 80%.

The Seoul Bankruptcy Court reportedly issued a "comprehensive prohibition order" against Nolboo on the 4th.

This measure prevents the company from disposing of its assets or repaying debts without court permission until a decision is made on whether to commence rehabilitation procedures, while also restricting creditors from filing provisional attachments, provisional injunctions, and forced executions.

The court is expected to decide whether to initiate rehabilitation procedures following a representative interrogation scheduled for the 11th.

Years of sluggish performance are cited as the reason Nolboo sought the bankruptcy court.

Nolboo was a leading domestic Korean restaurant franchise that once boasted nearly 1,000 franchises and annual sales exceeding 120 billion won on the back of bossam and budae-jjigae. However, amid intensifying competition in the dining industry and the overlap of the COVID-19 pandemic, it recorded consecutive operating losses for six years from 2017 to 2022.

Although it succeeded in turning a profit in 2023, it subsequently returned to a deficit.

Nolboo's sales last year stood at 63.9 billion won, a decrease of about 16% from 76.1 billion won the previous year, while its operating loss during the same period ballooned more than 14 times from 600 million won to 8.7 billion won.

Nolboo, which started as a bossam restaurant by former CEO Kim Soon-jin in 1987 and enjoyed nationwide popularity as a first-generation member of the domestic franchise industry, was acquired by a private equity firm affiliated with Morgan Stanley, and an investment purpose company, NV Holdings, has held management rights since 2022.

An official from NV Holdings, Nolboo's largest shareholder, stated regarding the corporate rehabilitation application, "We have nothing to state at this time."

Reported by Kim Taewon | Video by Lee Ui-seon | Graphics by Yook Do-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.