South Korean cosmetics firm Skinfood collapses
South Korean cosmetics firm Skinfood has filed for court receivership after increasing financial losses.
The company’s former popularity of a decade ago was hit by the 2015 Middle East Respiratory Syndrome (MERS) outbreak and diplomatic disputes between Seoul and Beijing, both events affecting the brand’s core overseas markets.
A company spokesperson said: “We are having temporary difficulty in securing liquidity due to excessive debt. We sought the court restructuring as we thought settling the debt and promptly normalising management will benefit everyone, including the creditors.”
The company has plans to sell off some of its overseas business rights and expand its online channels to improve its standing.
Skinfood’s sales reached KRW126.9 billion (US$111.96 million) last year, a drop of 25 per cent from the year previous, with an operating loss of KRW98 billion ($86.46 million).