Existing management stripped of operational and asset-disposal authority

Court says neutral third party best suited to preserve assets during review

The headquarters of food and beverage company Nolboo in Samseong-dong, Seoul. [Yonhap]
The headquarters of food and beverage company Nolboo in Samseong-dong, Seoul. [Yonhap]

A Seoul court has appointed a custodian to oversee hansik franchise operator Nolboo after the company filed for court rehabilitation, entrusting asset preservation to a neutral third party.

The Seoul Bankruptcy Court's 15th Rehabilitation Division, presided over by Judge Kim Yun-seon, issued a custodial management order against Nolboo on Monday.

A custodial management order is a mechanism courts invoke when measures beyond a standard preservation order are deemed necessary. It strips the debtor's existing executives of their authority to conduct business and manage or dispose of assets, transferring those powers to a court-appointed custodian.

The court said it issued the order because "some time is expected to be needed to examine whether the conditions for commencing rehabilitation proceedings are met," adding that it "determined it appropriate for a neutral third party, rather than the existing management, to preserve the company's assets in the meantime."

Under the order, Nolboo must obtain court approval through the custodian before repaying monetary debts, disposing of assets, or making any expenditure exceeding 10 million won.

Nolboo filed for rehabilitation on July 31, having struggled financially through the COVID-19 pandemic and its aftermath. According to its 2025 audit report, the company posted an operating loss of 8.69 billion won ($6.32 million) last year — roughly 14.8 times the 584.8 million won loss recorded the previous year.

The court issued a blanket injunction against Nolboo on Aug. 4 and held a hearing to question the company's representative on Aug. 11.


notstrong@heraldcorp.com