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S. Korean cosmetics firm Skinfood placed under court receivership

All Headlines 14:54 October 19, 2018

SEOUL, Oct. 19 (Yonhap) -- A Seoul court on Friday placed Skinfood under its receivership in a move that could help the troubled South Korean cosmetics firm pick up speed for its normalization, the company said.

The decision by the Seoul Bankruptcy Court came about a week after the cosmetics maker filed for a court-led restructuring scheme, saying that it is having a temporary difficulty in securing liquidity due to excessive debt.

Some of the measures to be carried out are to reduce its production list to save costs and to push for sales of its stakes in its Chinese or U.S. units, Skinfood said.

"As we have confirmed through various routes the demands from our stakeholders and consumers to continue production, we will focus on normalizing our financial structure and the supply of products as soon as possible," a company official said.

The cosmetic brand is currently present in 19 foreign markets, including the United States, China and Japan.

Skinfood's sales came to 126.9 billion won (US$112 million) in 2017, down 25 percent from the previous year, with an operating loss of 98 billion won, according to its regulatory filing.

This image, provided by Skinfood, shows its sun protection product. (Yonhap)

scaaet@yna.co.kr
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