'Chorokmaeul Under Rehabilitation Proceedings, All Stores Nationwide Operate Normally Over the Weekend'

100% of Directly Operated Stores and 95% of Franchise Stores Nationwide Continue Normal Operations
Based on Court-Issued Comprehensive Business Continuation Permit

Chorokmaeul announced on July 7 that during the first weekend (July 6-7) following the commencement of court rehabilitation proceedings, 100% of its directly operated stores and over 95% of its franchise stores nationwide continued normal operations, recording an operating rate similar to that of the same period in the previous week.

On July 4, the Seoul Bankruptcy Court decided to commence rehabilitation proceedings for Jeongyukgak and Chorokmaeul on the same day, and simultaneously granted a 'comprehensive business continuation permit' to ensure uninterrupted business operations.

Inside the Chorokmaeul store. Chorokmaeul

On July 5, the operating rate for Chorokmaeul franchise stores was 95.2%, which is nearly the same as the same day of the previous week (96.1%). On July 6, the operating rate was 39%, also similar to the previous Sunday's rate (40.4%), indicating that stores are operating as usual. Non-face-to-face distribution channels, such as online mall orders, customer service responses, and logistics center shipments, are also being maintained at normal levels.

The comprehensive business continuation permit issued by the court is a key system that allows companies to continue routine operations in areas such as business, distribution, personnel, and finance without interruption, even during rehabilitation proceedings. As a result, Chorokmaeul and Jeongyukgak can maintain their existing relationships with business partners, customers, and franchisees under legal protection, and begin implementing strategies for business recovery.

The company stated, "This rehabilitation is a responsible decision to move beyond a short-term liquidity crisis and transition to a sustainable structure," adding, "We deeply appreciate the court's swift decision to commence rehabilitation proceedings and grant the comprehensive business continuation permit. We will continue to prioritize market stability while maintaining the trust of our customers, franchisees, and partners."