Seoul Mungo (“Client”) was established in 1988 and opened the first store of its leading bookstore chain “Bandi & Luni’s” in COEX, a shopping mall in Seoul’s Gangnam District, growing into the third-biggest bookstore in Korea by operating bookstores in many cities throughout the country for 33 years. However, faced with challenges, such as a decrease in demand for books due to the expanded utilization of internet and other information media, a transition in book consumption towards online bookstores, and the impact of the COVID-19 pandemic on sales, Client experienced financial crisis.
In such situation, Client appointed DR & AJU as its legal representative and applied for rehabilitation procedures on June 28, 2021. Client was permitted by the court to conduct pre-authorised M&A sale procedures on July 20, 2021. Client appointed DR & AJU and Samil PwC as its main selling agents. Client was put up for sale in the M&A market as a stalking horse bid on February 7, 2022, and the initial bidder received a letter of intent for acquisition in February 2022.
DR & AJU acted as the legal counsel for Client during its rehabilitation procedure and M&A sales. Despite the multitude of challenges faced during the rehabilitation process, including the involvement of a large number of stakeholders and legal disputes arising from the closure of operating stores, DR & AJU effectively address these challenges by providing prompt and accurate legal advice with a broad view of the entire rehabilitation process. Consequently, DR & AJU achieved the decision of authorization of the rehabilitation plan for Client.
