KB News Desk
Nolboo, the South Korean restaurant franchise best known for its signature budaejjigae — a fusion stew that emerged in the aftermath of the Korean War, combining Korean ingredients such as kimchi and tofu with American staples like sausage and baked beans — has filed for court-led corporate rehabilitation after years of financial difficulties.
According to restaurant industry and legal sources on Thursday, the Seoul Bankruptcy Court issued a comprehensive preservation order for Nolboo on Tuesday after the company applied for rehabilitation proceedings.
The order bars the company from disposing of assets or repaying debts without court approval while the court reviews whether to formally commence rehabilitation proceedings.
The filing comes after years of weak financial performance. Nolboo posted operating losses for six consecutive years from 2017 to 2022 as intensifying competition in the restaurant industry and the lingering effects of the COVID-19 pandemic weighed on its business.
Although the company returned to profitability in 2023, it slipped back into the red the following year.
According to Nolboo’s latest audited financial statements, revenue fell 16 percent to 63.9 billion won ($44.9 million) in 2024 from 76.1 billion won a year earlier. Over the same period, operating losses widened sharply to 8.69 billion won from 585 million won.
As of the end of 2024, the company had accumulated deficits of 95.9 billion won, while its capital impairment ratio stood at 82 percent.
The court is scheduled to question the company’s representative on Aug. 11 before deciding whether to formally commence rehabilitation proceedings.
