Ailing home meal replacement (HMR) company Orum has been put up for sale after its rehabilitation proceedings failed earlier this year, sources said on Tuesday (December 8).

The Uijeongbu District Court approved an application on Friday (November 11) by an administrator for the company to carry out a public auction and hire a sale manager. If the court approves the company’s mergers and acquisitions (M&A) plan, the sale of Orum’s management rights is likely to be accelerated.

The court approved the company’s rehabilitation process earlier this year and the administrator hired a sale manager in June. However, Orum failed to draw up its rehabilitation plan, with the company’s liquidation value continuing to exceed its value as a going concern, and the court decided to end the rehabilitation scheme in August.

Now Orum has been allowed to restart its rehabilitation. “The company wants to have its going concern value re-valued by raising money through M&A,” an industry source said. The administrator has reportedly started seeking a sale manager for a public auction.

Founded in 2015, Orum recorded revenue of 4.7 billion won ($4.3 million) in 2017 and 3.6 billion won in 2018. Its gross profit declined from 1.1 billion won to 800 million won in the same period. (Reporting by Sun-young Kim)