The Willbes files for court receivership amid deepening financial crisis

The Willbes said Friday it has applied for court receivership to normalize its management and preserve its value as a going concern. The company filed the petition with the Suwon Rehabilitation Court on Sept. 4.

The move follows adverse developments over the past month that left the firm unable to meet debt obligations. After creditor-led management procedures began in late July, the company reported in mid-August that it had eroded its entire capital base and received an adverse opinion on its semiannual financial review. By the end of August, The Willbes disclosed it had defaulted on loan principal, interest payments and debenture dues, leading to a suspension of the earlier creditor management process.

The financial strain was driven primarily by a sharp contraction in its core textile export business. Export sales from its garment division fell from 151 billion won in 2024 to 125 billion won in 2025, before dropping to 52.3 billion won in the first half of 2026. Total revenue for the first six months stood at 86.1 billion won, with the struggling textile segment accounting for 62.6 percent and education operations contributing the remaining 37.2 percent.

The company operates as an original equipment manufacturer for global brands including GAP, Hanesbrands, The Children's Place and Kohl's, producing knitwear and swimwear at facilities in Indonesia, Cambodia, the Dominican Republic and Haiti. Its education arm runs adult civil service academies such as Hanlim Law Academy and Namu Management Academy.