Cheongrokmaul's flagship store to close as chain struggles to find buyer

Cheongrokmaul continues to shutter stores as the organic grocery chain remains unable to find a buyer during court receivership proceedings.

The chain's Mapo-gu location — its first store, opened in 2002 — will close June 18, according to industry sources. The store carried considerable symbolic weight: a 2013 renovation more than doubled its floor space from 33 square meters to 69 square meters. It is now being wound down as part of the receivership process.

The Mapo-gu store had already cut weekend operating hours in an effort to stay afloat, and in April raised the minimum order threshold for free delivery to 70,000 won (about $46). Its product lineup has since shrunk, weakening its competitiveness. Multiple items on the chain's online store are currently listed as out of stock, and customers have reported difficulty reaching the service center.

Cheongrokmaul's store count has been falling steadily. The chain operated 292 locations when it entered receivership in July last year; only 216 remain. It has not opened a new store since the Cheongdam-jungang branch launched in November last year.

Cheongrokmaul was acquired by meat delivery startup Jeong Yuk Gak in 2022, but both companies entered court receivership together in July last year. The Seoul Bankruptcy Court has authorized the chain to pursue a merger or acquisition before a rehabilitation plan is formally approved, and it is currently seeking potential buyers.

Hwang Yong-sik, a professor of business administration at Sejong University, said offline retailers such as Cheongrokmaul and Homeplus "continue to face persistent difficulties," adding that "prolonged earnings weakness appears to be eroding their appeal as acquisition targets and making it harder to find buyers.".