Japanese ramen chain Aori Ramen has declared bankruptcy after suffering from coronavirus and the boycott on Japanese goods in South Korea.
All Aori Ramen branches will be shut down, including those in Malaysia and China.
According to Koreaboo, Aori F&B filed for bankruptcy with the Seoul Bankruptcy court with its debts exceeding the value of its assets.
Aori F&B said after its founder Seungri was involved with the Burning Sun scandal, the company experienced major losses with sales plunging by more than 50 percent. Aori F&B then cut ties with the South Korean singer, hoping the restaurant would gain its customers back.
The company also stated in a statement that the South Korean consumer boycott of Japanese goods also affected its business. With the subsequent coronavirus outbreak decimating restaurant patronage it is no longer able to pay its debts.
The Seoul Bankruptcy Court’s decision has yet been made as the court wants to investigate further the Aori F&B’s ability to pay its debts.