Green Village Pushes for Pre-Authorization M&A with Court Approval

Organic food brand Chorokmaeul has opened a new chapter for rehabilitation and has officially commenced pre-approval M&A (Mergers & Acquisitions) procedures, aiming to complete the acquisition process within six months. Having obtained approval from the Seoul Bankruptcy Court, it plans to sequentially proceed with a structured acquisition process including selecting a lead manager, recruiting investors, and due diligence. In particular, it aims for transparent and efficient procedures by considering methods such as the 'stalking horse' bid. Immediately after filing for rehabilitation, there has been a significant outpouring of interest from strategic investors (SIs) and private equity funds (PEFs) in the organic food and eco-friendly distribution sectors. This is evidence that Chorokmaeul's long-established nationwide distribution network, customer trust, and strong brand assets are still recognized as highly competitive in the market. Currently, under court supervision, Chorokmaeul is operating key customer touchpoints, including offline stores nationwide and logistics centers, without disruption. Its top priorities are minimizing damage to all stakeholders, including franchisees and partners, and normalizing stable transactions and supply. This M&A, aimed at preventing damage to corporate value, protecting creditors, and accelerating business normalization, is enhancing the possibility of reorganization into a sustainable organic distribution platform. Meanwhile, affiliate Jeongyookgak also received pre-approval M&A authorization on the same day, seeking business normalization through attracting external investment, thus making the group's overall rehabilitation efforts visible. Chorokmaeul plans to solidify new growth foundations through a fair and transparent M&A process.