The dessert franchise company "Mangwon-dong Tiramisu" is set to be discharged from bankruptcy proceedings about a year after entering them. The court has determined that it would be difficult to secure funds to repay creditors even if all the company's assets are sold.
According to the legal community on the 25th, the 13th Division of the Seoul Bankruptcy Court (Director General Kang Hyun-gu) announced it will convene a creditors' meeting for Mangwon-dong Tiramisu on the 26th.
A court official noted, "The bankruptcy trustee confirmed that Mangwon-dong Tiramisu is in a situation where it cannot repay its debts." He explained, "This is to inform creditors of this and to hold a meeting to gather their opinions." The bankruptcy process has effectively reached its conclusion.
Earlier, the Seoul Bankruptcy Court declared a simplified bankruptcy for Mangwon-dong Tiramisu in July of last year. Simplified bankruptcy is a procedure conducted when the debtor's assets are less than 500 million won at the time of the bankruptcy declaration.
Mangwon-dong Tiramisu opened its first store near Mangwon Station in the Mapo District of Seoul in 2017. They sold tiramisu served in cups topped with snacks or fruits, which drew attention due to its unique appearance. The store's interior, styled to reflect the atmosphere of the 1980s and 1990s, resonated with the retro trend at the time, attracting interest among young people on social media (SNS). At one point, its popularity led to the establishment of over 60 franchise locations nationwide.
However, the company's performance was not good. Although sales increased from approximately 2.2 billion won in 2018 to about 5.2 billion won in 2020, it recorded an operating loss of 42 million won.
Conflicts also arose with franchise owners. In 2021, some franchise owners reported to the Fair Trade Commission, claiming that the headquarters exaggerated the projected sales figures during the franchise contract negotiations. As a result, in 2022, the Fair Trade Commission issued a warning to Mangwon-dong Tiramisu.
Determined that it would be difficult to operate the business normally due to poor performance and various conflicts, Mangwon-dong Tiramisu submitted a bankruptcy application directly in June of last year.