Caffe Bene Co., operator of South Korea’s home-grown coffee shop chain Caffe Bene, has successfully turned around through reorganization in just nine months under court management.
The Seoul Bankruptcy Court said on Thursday that Caffe Bene has graduated from court-led reorganization program by outperforming its earnings target through cost-saving efforts.
The coffee chain operator that ran 805 stores in just four years since founding in 2008 applied for court protection in January after struggling in new business and overseas ventures.
In May, it vowed to pay 70 percent of its obligation in cash and convinced creditors to convert rest of 30 percent debt into equity. The company fully paid off the remaining debt last month.
The court said that Caffe Bene is raising operating income higher than expected in its restructuring plan through cost-saving measures and expected the operator to generate stable sales by searching for new franchise members and maintaining steady relations with 410 franchises across the country.
Caffe Bene said it will focus efficient management on franchise outlets upgrade the Caffe Bene brand.
By Lee Duk-joo and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]