On the 30th, it was learned that the court decided to open corporate rehabilitation (court receivership) proceedings for Newnex, which operates the women's fashion platform "Brandi" and the men's fashion platform "Hiver."
The Rehabilitation Division 12 of the Seoul Bankruptcy Court (Presiding Judge Choi Du-ho, Director General) decided to open rehabilitation for Newnex on the 22nd. Earlier, Newnex applied to the Seoul Bankruptcy Court to open corporations rehabilitation proceedings on the 16th and then held a representative examination date on the 19th.
Newnex applied for rehabilitation due to deteriorating finances. Founded in 2014, Newnex started with the women's clothing shopping mall Brandi and expanded into a fulfillment (comprehensive logistics agency) business that opened online sales channels for Dongdaemun fashion wholesalers. At one point, it also raised a cumulative 150 billion won in investment.
However, it is known that financial soundness worsened due to liquidity deterioration caused by excessive initial investment expense and expenditure and weakened competitiveness in the fashion platform market. Last year, Newnex's total equity was minus (-) 30.6 billion won, indicating a state of complete capital impairment. During the same period, sales were 19.5 billion won, down 66% from a year earlier, and operating loss came to 500 million won.
Meanwhile, Hiver, which is operated as a separate corporation, also applied to the court for corporations rehabilitation proceedings on the 19th. The court issued a comprehensive stay order for Hiver on the 22nd. This is a procedure that freezes the company's asset and liability and prohibits individual debt collection such as provisional seizure and injunctions. The court also held a representative examination date for Hiver on the 25th.