Kimchi refrigerator maker Winia initiates re-sale after 10 years

Dimchae [Courtesy of Winia]

Winia Co., a South Korean home appliances manufacturer known for its Dimchae kimchi refrigerator, will seek a new owner for the first time in 10 years. The move comes after the company initiated corporate rehab proceedings in October and it is now embarked on a quest to attract investors for acquisition as part of its strategy for survival.

Winia announced Thursday it signed a contract with leading accounting firm Samil PwC and launched the M&A process following approval from the Seoul Bankruptcy Court on Tuesday.

Winia said it intends to receive a letter of intent by the end of January 2024 and sign a memorandum of understanding and an investment agreement in February, with the aim of expediting the conclusion of its turnaround plan.

Samil PwC will conduct a thorough assessment of Winia and scrutinize existing issues to devise the most optimal M&A strategies. Subsequently, the accounting firm will extend advisory support across all phases of Winia’s M&A proceedings.

“The M&A process is an integral part of our corporate rehabilitation efforts aimed at solidifying the value and future prospects of the Dimchae brand, ensuring our utmost efforts to regain consumer trust,” said Winia CEO Kim Hyuk-pyo.

Dayou Winia Group is shutting down Winia 10 years after acquiring the company for 70 billion won ($54 million) in 2014. Recently, Dayou Winia Group has faced management challenges, leading its subsidiaries into wage arrears and court protection.