Nolboo, Once a 120 Billion Won Franchise, Seeks Court Rehabilitation Amid Soaring Losses

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

The move is attributed to a worsening financial situation, marked by operating losses surging to 8.7 billion won last year and a 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 assets or repaying debts without court permission until a decision is made on whether to open rehabilitation proceedings, while also restricting creditors from filing provisional seizures, provisional injunctions, and compulsory execution.

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

Nolboo's resort to the bankruptcy court is attributed to years of sluggish performance.

Once a leading domestic Korean food franchise with around 1,000 locations and annual sales exceeding 120 billion won on the back of bossam and budae-jjigae, Nolboo recorded operating losses for six consecutive years from 2017 to 2022 due to intensifying competition in the dining industry compounded by the COVID-19 pandemic.

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

Nolboo's sales last year dropped about 16% to 63.9 billion won from 76.1 billion won the previous year, while operating losses during the same period reportedly swelled more than 14-fold from 600 million won to 8.7 billion won.

Founded in 1987 by former CEO Kim Soon-jin as a bossam shop, Nolboo enjoyed nationwide popularity as a first-generation player in the domestic franchise industry. After being acquired by a Morgan Stanley-affiliated private equity fund, its management rights have been held by the investment purpose company NV Holdings since 2022.

Regarding the application for corporate rehabilitation, an official from NV Holdings, Nolboo's largest shareholder, stated, "We have no position to express at this time."

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