Fresh food delivery firm Oasis' acquisition of TMON clears court hurdle

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Fresh food delivery firm Oasis' acquisition of TMON clears court hurdle

Published: 14 Apr. 2025, 17:53

Audio report: written by reporters, read by AI

Sellers and customers affected by TMON's liquidity crisis hold a protest demanding refunds or payment in front of the e-commerce platform's headquarters in Gangnam District, southern Seoul, on Aug. 13, 2024. [YONHAP]

Oasis, a fresh grocery delivery company, is set to acquire e-commerce platform TMON after being named the preferred bidder by the Seoul Bankruptcy Court on Monday.

The decision comes nine months after TMON filed for court receivership in July 2024 due to worsening financial conditions, including a major delay in vendor payments.

The acquisition will take place entirely through the issuance of new shares, with Oasis investing 11.6 billion won ($8.2 million). The company plans to inject an additional 6.5 billion won to cover unpaid wages and severance liabilities, bringing the total effective acquisition cost to 18.1 billion won. Oasis has also pledged to retain TMON employees for five years.

Oasis operates Oasis Market, an organic and eco-friendly fresh food delivery service in Korea. Known for its bundled overnight deliveries, the company has built a reputation for its efficiency in the competitive early morning delivery market.

In its proposal to the court, Oasis said it aims to enhance TMON’s logistics capabilities and generate synergy by combining its delivery strengths with TMON’s existing open market structure. If the rehabilitation plan is approved, Oasis will use the acquisition funds to settle TMON’s rehabilitation debt and inject additional working capital to speed up the normalization process.

The court plans to hold a meeting of creditors sometime in June to review and vote on the rehabilitation plan, which must be submitted by May 15. Approval will require consent from at least 75 percent of secured creditors and 66 percent of unsecured creditors.

According to TMON’s court-appointed manager, if the plan is approved, general rehabilitation creditors are expected to recover around 0.8 percent of their claims through the acquisition. A prior assessment estimated the liquidation recovery rate in the event of bankruptcy at just 0.44 percent.

TMON, alongside affiliate online marketplace WeMakePrice, which is also under court receivership, initially sought a joint sale. However, plans shifted to individual sales due to market conditions, leading to separate negotiations with Oasis.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY SHIM SEO-KYONG [[email protected]]