Franchise "Nolbu" Files for Rehabilitation Amid Soaring Operating Losses

Representative Examination Hearing Scheduled for August 11

Nolbu, a franchise restaurant company, has filed for rehabilitation with the court.

Nolbu CI. Nolbu

According to the legal community on August 6, the 15th Division for Rehabilitation of the Seoul Bankruptcy Court (Presiding Judge Kim Yunseon) issued a comprehensive stay order to Nolbu, which had applied for rehabilitation, on August 4. A comprehensive stay order is a measure that freezes all claims until the court decides whether to commence rehabilitation proceedings.

The representative examination hearing is scheduled for August 11 at 4:30 p.m.

Nolbu began in 1987 as a bossam restaurant in Sillim-dong, Gwanak-gu, Seoul. In the 1990s and 2000s, bossam and budae-jjigae were popularized as franchise menu offerings. At one point, the company expanded to operate around 1,000 stores nationwide.

The sharp increase in operating losses appears to be the main driver behind the application for rehabilitation. According to the electronic disclosure system of the Financial Supervisory Service, last year’s operating loss was approximately KRW 8.69 billion, about 14.8 times greater than in the previous year.

Revenue also decreased by 16.1% year-on-year to KRW 63.85 billion. Net loss for the period was about KRW 13.93 billion, which is roughly nine times higher than the previous year. Accumulated deficit reached KRW 95.92 billion, up 17.0%. As of the end of last year, the capital impairment ratio was about 82.2%, indicating the company remained in a state of partial capital erosion.

Meanwhile, since 2024, Nolbu's CEO has been Kim Yongwi, who previously served as the exclusive photographer for former President Yoon Suk-yeol and as the chief of the presidential office media team. The largest shareholder is NB Holdings.

This content was produced with the assistance of AI translation services.