[THE INVESTOR] LF Food has acquired Kraze Burgers as a strategy to expand its restaurant business, according to industry sources on Oct. 16.
The food service subsidiary of fashion group LF has reportedly purchased some assets including the trademark of the homemade burger brand for 1 billion won (US$883 thousand).
LF Food is aggressively seeking expansion in the restaurant business. In May 2016, it acquired MonoLink, a Japanese food materials distribution company for 30 billion won, and in September, the company purchased 71.69 percent stake in cheese import and distribution company Gourmet F&B Korea for 36 billion won.
Kraze Burgers was established in 1998 continued to growth until 2010, when it faced a crisis due to intensified competition and unsuccessful overseas business promotion. Despite several revival measures, the company could not recover due to liquidity deterioration in 2016. Attempts to put it on the market in 2013 failed due to pending lawsuits in the US.
By Alex Lee (email@example.com)