Home appliance maker Winia Co. is poised to find a new owner after more than a year in corporate rehabilitation.

According to law and business sources on Monday, Winia submitted an application to the Seoul Bankruptcy Court seeking approval for the selection process of a merger and acquisition (M&A) candidate.

The application reveals that Winia has identified a specific private equity joint venture as the potential buyer and is requesting permission to sign a conditional investment agreement. The company views this M&A as a critical step in its efforts to normalize operations.

If the court approves the M&A, Winia will move forward with the conditional investment agreement and review any other bidders with more favorable terms during the public bidding process before finalizing the buyer. The deadline for submitting its rehabilitation plan is March 20th, 2025, and the process must be completed before that date.

If the M&A proceeds successfully, Winia expects to resolve ongoing financial challenges, including wage arrears.

Winia posted an operating profit of 42.8 billion won ($29.7 million) in 2021, but shifted to an operating loss of 73.6 billion won in 2022. Losses grew to 281.2 billion won in 2023, prompting the company to apply for rehabilitation proceedings in October of that year. Since then, Winia has been pursuing an M&A sale prior to the approval of its rehabilitation plan.

With a new owner, Winia is expected to overhaul its business model and restructure operations, addressing long-standing management issues, including wage delays.

The company will hold a briefing for employees on Thursday to present its rehabilitation plan and strategies for securing financial stability.

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