This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:30 p.m. on Dec. 1, 2025.
Eco-friendly food brand Chrocmaeul has begun procedures to sell its management rights. KK Holdings initially proposed ending corporate rehabilitation by signing a stock purchase agreement (SPA) with Shinhan Capital, the largest shareholder, but after failing to persuade creditors, it was confirmed that the company will pursue a merger and acquisition (M&A) process before the rehabilitation plan is approved.
According to investment banking (IB) industry sources on the 1st, Chrocmaeul has entered a bidding process to sell its management rights. The plan is to attract external capital through third-party allotment of new shares and other measures. The structure transfers management rights by issuing new shares to the new buyer while canceling existing shareholders' equity free of charge. The sales adviser is Samil Accounting Corporation.
Because time was delayed by the conflict between the incumbent management appointed as administrators and KK Holdings, it is reported that the company will proceed directly to competitive bidding instead of a stalking-horse bid. A stalking-horse bid is a method that designates a conditional buyer in advance and then selects the final buyer through bidding. The seller plans to receive letters of intent (LOIs) through this week and then select the prospective buyer.
Earlier, KK Holdings signed a contract to acquire the stake from Shinhan Capital, which held the first-priority pledge on 99.77% of Chrocmaeul's equity. The structure was to pay a deposit first and pay the balance after securing management rights. KK Holdings is an affiliate of KK, a petroleum product retailer founded in 1927 (formerly Kyungbuk Petroleum), and was reported to be seeking entry into new businesses combining agriculture and distribution.
However, a clash of opinions arose between KK Holdings and the incumbent management appointed as administrators of Chrocmaeul. KK Holdings proposed to assume the company's approximately 40 billion won debt in full, immediately repay 20% of the creditor claims, and then repay more than 10% annually. According to the agreement, it was expected to take about eight years to repay the entire debt.
KK Holdings also demanded the replacement of the administrators and the cancellation of the rehabilitation plan, arguing that if the rehabilitation process drags on, Chrocmaeul's supply chain and brand value could be damaged. Legal representatives argued that it would be difficult to guarantee procedural transparency and rationality if the former representative, who had already lost major shareholder status, leads the M&A as an administrator.
But the creditors sided with the administrators. The 'debt assumption-type M&A' was an unprecedented structure, and KK Holdings' lack of recognition as the acquiring party appears to have influenced the decision. Trade creditors seemed to judge that it was more advantageous to be immediately repaid with funds coming in through a rehabilitation M&A.
With KK Holdings' acquisition process tentatively suspended, attention is focusing on prospective buyers who will participate in this sale. Industry sources suggest that because the profitability of Chrocmaeul's directly managed stores is maintaining a certain level, a new buyer may emerge. In the investigation report, Chrocmaeul's liquidation value is 16.1 billion won, and the sale price is expected to be determined in the mid-10 billion won range.