South Korea’s MP Group, which operates home-grown pizza chain Mr. Pizza, is very likely to be ousted from the secondary Kosdaq market as the exchange’s review panel ruled for the delisting on Monday. The deliberation is subject to approval of the Kosdaq market committee for a final decision.
The latest ruling comes after the company had been embroiled in a number of scandals. The owner family was found to have profiteered by overcharging franchisees in cheese supplied by a company owned by the family of former MP Group Chairman Jung Woo-hyun. Jung was also accused of being involved in unfair practices such as opening new stores near outlets operated by former franchisees in retaliation for withdrawing from MP Group.
The accusations followed his assault of a company guard in April 2016. He made a public apology and stepped down as CEO in the same year. He was eventually brought to trial on charges of embezzlement and breach of trust in July last year.
The series of incidents prompted the exchange to suspend trading of MP Group shares and gave the company a grace period for improvement in October last year. But the company failed to recover from the poor publicity and sales.
By Chung Seul-gi and Minu Kim
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