SEOUL - Interpark Commerce has officially filed for a debt restructuring program with the Seoul Bankruptcy Court, joining the ranks of fellow e-commerce companies TMON and WeMakePrice, which are grappling with a significant liquidity crunch. This filing, completed on Friday, marks a critical phase for all three subsidiaries of Qoo10 as they seek court intervention to restructure their debts.
According to Yonhap News Agency, Interpark Commerce applied for the Autonomous Restructuring Support (ARS) program 18 days after its sister companies, TMON and WeMakePrice, initiated the same process to renegotiate terms with creditors. The recent application by Interpark makes it the third and final e-commerce entity under Qoo10's umbrella to seek such relief amidst financial turmoil. The Seoul Bankruptcy Court allowed TMON and WeMakePrice to commence the ARS program earlier on August 2.
The need for restructuring follows a sharp decline in customer confidence, which precipitated a severe liquidity shortage for Interpark, exacerbated when TMON and WeMakePrice failed to clear 1 trillion won (approximately US$737 million) in payments due to vendors. The company expressed its commitment to minimizing the impact on its stakeholders, stating, "We are making our utmost efforts to minimize damage to our vendors and customers while discussing strategic investment and the potential sale of the company with prospective investors."
Interpark highlighted its ongoing negotiations with potential investors and the critical need for time to generate tangible outcomes. The company also emphasized its intent to engage fairly and autonomously with vendors through the ARS program. Currently, Interpark is struggling to settle or is overdue on approximately 55 billion won in sales proceeds, impacting around 50,000 creditors, mostly sellers.
The company's financial struggles are further underscored by its significantly lower transaction volume compared to its peers, along with a recorded operating loss of 15.7 billion won from March to December of the previous year, against a sales total of 34.2 billion won.