The luxury platform Balaan has applied for corporate rehabilitation procedures, and along with Balaan, the so-called 'Must It (Must It, Trenbi, Balaan)' companies in the same industry, Must It and Trenbi, have begun shortening the settlement cycle for sellers. This is interpreted as an effort to dispel concerns about the liquidity of partner companies.
According to industry sources on the 2nd, Must It will reduce the settlement cycle for sellers by two days starting on the 14th. It has decided to implement a policy that shortens the settlement cycle from the existing 3-9 business days to 1-7 business days and has informed sellers of this change.
Accordingly, settlement on the next day after purchase confirmation will also be possible depending on the partner company's sales grade. If the seller's grade is 'S' or '1', settlement will take place one business day after the purchase decision. If the buyer does not make a purchase decision within 7 days of receiving the product, it will be processed as a default purchase decision.
Must It's action is interpreted as a response to Balaan applying for corporate rehabilitation procedures. Balaan postponed the scheduled settlement payment to its partners on the 24th of last month and applied for corporate rehabilitation procedures on the 31st. Balaan explained the background of its application for rehabilitation, saying, 'The delay in securing additional funds has resulted in a temporary liquidity crunch.'
Must It expressed deep regret over the settlement non-payment issue raised recently in the distribution industry, stating, 'We decided to shorten the settlement cycle to enhance the stability and liquidity trust of partner companies.'
It added, 'We have been implementing a temporary policy for next-day settlements for all sellers since the 31st of last month for two weeks, and we have formalized this structural reorganization and regularization of the settlement system based on this.'
Another luxury platform, Trenbi, also announced the previous day that it would advance its settlement cycle for the month of April. Trenbi plans to pay the settlement amounts that had previously taken 2-3 weeks within 1-2 weeks. Settlements are scheduled for the 9th, 16th, and 23rd. A Trenbi official said, 'The aim is to support partners who may face financial difficulties due to this situation, and we hope that this early settlement will alleviate some of the financial burden on our partners.'
They emphasize that there are no issues with their financial structure. Must It stated that as of the end of last year, its current assets were approximately 11 billion won, current liabilities were about 4.1 billion won, and that its current ratio is about 270%. The current liabilities include deposits of approximately 3.3 billion won.
Trenbi indicated that as of the end of last year, its liquid assets were about 8 billion won, and after excluding partner settlement liabilities of 3.5 billion won, its cash-equivalent safe assets were estimated at about 4.5 billion won.