Once aspiring to be a unicorn, fashion platform operator Newnex has filed for court receivership. Sluggish domestic consumption and the rise of Chinese ultra-low-cost platforms have triggered another wave of industry crisis.
Brandy and Hiver Operator Seeks Court Protection
Newnex, which operates women’s platform Brandy and men’s platform Hiver, has filed for court receivership after facing plunging sales and capital erosion. In 2024, sales dropped to ₩19.5 billion (down 65% YoY), while capital fell to –₩30.6 billion, fully eroding equity.
Message to Sellers
In a notice, Newnex stressed the move was to normalize financial structure under court supervision, not liquidation. The company pledged to settle past debts through legal procedures and pay new transactions normally.
Chinese Platforms’ Aggressive Expansion
Alongside weak consumer demand, Chinese platforms like Shein posed the biggest threat. With their ultra-low-price strategy, Brandy’s monthly active users fell over 40% in a year.
A Chain of Retail Failures
The Brandy case follows a chain of retail crises: Tmon and Wemakeprice last year, and luxury platform Balaan earlier this year, all filed for court protection. Analysts warn of a possible domino effect.
Lessons for the Industry
This is more than one company’s failure: it signals Korea’s e-commerce ecosystem is vulnerable to Chinese pricing pressure and reduced investment. For operators, the key tasks are cost efficiency, brand identity, and differentiation strategies.
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